Monday, December 22, 2008

No evasion of accrued tax by amending contract retrospectively

According to the Supreme Court, the law permits the contracting parties to lawfully change their stipulations by mutual agreement and, therefore, the assessee and the vendee had no legal impediment in modifying the terms of their contract; however, it could not be given any retrospective effect so as to facilitate evasion of tax liability that had already arisen.

No comments: