Due to uncertainty whether or not a new tax law is applicable to printing companies, ABC Printers submitted a legal query to the BIR on the issue. The BIR issued a ruling that printing companies are not covered by the new law. Relying on this ruling, ABC Printers did not pay the said tax. Subsequently however, the BIR reversed the ruling and issued a new one stating that the tax covers printing companies. Could the BIR assess ABC Printers for back taxes corresponding to the years before the new ruling? a) Yes, because taxation is the rule and exemption is the exception b) Yes, because taxes are the lifeblood of the government c) No, the BIR is not allowed to reverse its ruling d) No, reversal of a ruling shall not be given a retroactive application if it will be prejudicial to the taxpayer.

Due to uncertainty whether or not a new tax law is applicable to printing companies, ABC Printers submitted a legal query to the BIR on the issue. The BIR issued a ruling that printing companies are not covered by the new law. Relying on this ruling, ABC Printers did not pay the said tax. Subsequently however, the BIR reversed the ruling and issued a new one stating that the tax covers printing companies. Could the BIR assess ABC Printers for back taxes corresponding to the years before the new ruling? a) Yes, because taxation is the rule and exemption is the exception b) Yes, because taxes are the lifeblood of the government c) No, the BIR is not allowed to reverse its ruling d) No, reversal of a ruling shall not be given a retroactive application if it will be prejudicial to the taxpayer.