Which of the following actions is included in the CIR's powers related to tax liability adjustments?

• A. Impose penalties on third parties
• B. Compromise, abate, refund / credit tax
• C. Grant tax exemptions unilaterally
• D. Regulate bank services

Answer: (B)

The key idea is that the CIR can adjust a tax liability using remedies that settle or correct what is owed. Compromise, abate, refund or credit tax are exactly these tools: they let the CIR resolve disputes, reduce penalties or interest, or return money already paid. A compromise lets the CIR settle a claim for less than the full amount when full collection isn’t fair or practical. Abating reduces or removing penalties or interest for justified reasons. Refunding or crediting handles overpayments or erroneous assessments, ensuring the taxpayer isn’t charged more than due. These actions directly modify the amount of tax owed or paid, which is why they fit within tax liability adjustments.

Imposing penalties on third parties, granting tax exemptions unilaterally, or regulating bank services fall outside this specific adjustment authority: penalties on third parties are enforcement actions, exemptions normally require statutory authority, and bank regulation is handled by other regulators.