Under Sec. 11 of RA 1125, when the Court of Tax Appeals suspends collection, the taxpayer may satisfy the suspension by which action?

Under Sec. 11 of RA 1125, when the Court of Tax Appeals suspends collection, the taxpayer may satisfy the suspension by which action?

• A. Deposit the amount claimed
• B. File a surety bond for not more than double the amount
• C. Do either A or B
• D. Do nothing

Answer: (C)

When the Court of Tax Appeals suspends collection, there must be security to protect the government while the case is unresolved. The law allows two ways to satisfy that suspension: deposit the amount claimed with the court, or file a surety bond for not more than twice that amount. Depositing the cash provides immediate security that the government can apply if the taxpayer loses, while a supersedeas bond offers equivalent protection through a surety company and can be more convenient for the taxpayer who cannot tie up funds in cash. The important point is that either method achieves the required security, so the suspension can be granted if the taxpayer chooses one of these options. Do nothing is not an option because there must be security to stay collection.

When the Court of Tax Appeals suspends collection, there must be security to protect the government while the case is unresolved. The law allows two ways to satisfy that suspension: deposit the amount claimed with the court, or file a surety bond for not more than twice that amount. Depositing the cash provides immediate security that the government can apply if the taxpayer loses, while a supersedeas bond offers equivalent protection through a surety company and can be more convenient for the taxpayer who cannot tie up funds in cash. The important point is that either method achieves the required security, so the suspension can be granted if the taxpayer chooses one of these options. Do nothing is not an option because there must be security to stay collection.