The tax planning scheme adopted by Haeltown Corporation constitutes tax evasion. According to CIR v. Estate of Benigno Toda (G.R. No. 147188…

The question

The tax planning scheme adopted by Haeltown Corporation constitutes tax evasion. According to CIR v. Estate of Benigno Toda (G.R. No. 147188, September 14, 2004), a transaction where a taxpayer made it appear that there were two sales of the property was considered “tainted with fraud.” The sole purpose of acquiring and transferring title of the property on the same day was to create a tax shelter. The sale to Mr. Belly (which is subject to individual capital gains tax) was to mislead the BIR and avoid the higher corporate income tax. Which of the following are NOT usually imposed when there is a tax amnesty? (2011 Bar Question)

1. A.Civil, criminal, and administrative penalties
2. B.Civil and criminal penalties
3. C.Civil and administrative penalties
4. D.Criminal and administrative penalties

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