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QUIZ IN TAXATION REVIEW (TAX REMEDIES, TAX ADDITIONS)

1. Where compromise penalties are not allowed


a. Failure to preserve or keep books of accounts and accounting records
b. Failure to keep books of accounts or records in a native language or in
English
c. Failure to have books of accounts audited and have financial statements
attached to income tax return certified by an independent CPA.
d. Keeping two (2) sets of books of accounts or records.
2. All criminal violations may be compromised:
i. Except those already filed in court
ii. Except those involving fraud
a. True true b. True false c. False true d. false false
3. For filing a false and frauduent return, a surcharge is imposed at:
a. 25% as criminal penalty c. 50% as criminla penalty
b. 25% as administrative penalty d. 50% as administrative
penalty
4. A compromise for a tax liability on the ground of financial incapacity to pay
shall still involve a payment of tax from the taxpayer at a minimum
compromise rate of
a. 10% of the basic assessed tax c. 30% of the basic assessed tax
b. 20% of the basic assessed tax d. 40% of the basic assessed
tax
5. Using the preceeding no., with regard to compromises other than on the
ground of financial incapacity to pay, the compromise shall involve a
minimum compromise rate of
a. 10% of the basic assessed tax c. 30% of the basic assessed tax
b. 20% of the basic assessed tax d. 40% of the basic assessed
tax
6. Statement 1: the CIR may refund a tax even without a claim for refund from
the taxpayer where on the face of the return upo which the payment was
made; such payment clearly appears to have been erroneously made.
Statement 2: when 2 years are about to expire from the date of payment and
no decision has yet been received by the taxpayer on his clim for refund filed
with the BIR, the taxpayer may appeal to the CTA even without waiting for
the decision of the BIR on his claim for refund.
a. True true b. True false c. False true d. false false
7. Statement 1: the CIR is authorized to inquire into the bank deposit of the
taxpayer who has filed an application for compromise of his tax liability by
reason of financial incapacity to pay.
Statement 2: the CIR is authorized to look into the bank deposit of a decedent
to determine his gross estate.
a. True true b. True false c. False true d. false false
8. The Income Tax Return (ITR) for the calendar year 2013 was due for filing on
April 15, 2014, but the taxpayer voluntarily filed his tax return without notice
from the BIR, only on July 15, 2014. The Tax due per return amounts to
Php100,000. The total amount due on July15, 2014 (excluding compromise
penalty)is:
a. Php145,000 b. Php111,250 c. Php117,500
d. Php130,000

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QUIZ IN TAXATION REVIEW (TAX REMEDIES, TAX ADDITIONS)

9. Using the same facts above, but the ITR is filed ON TIME but through an
internal revenue officer other than whom the return is required to be filed.
The total amount due is
a. Php100,000 b. Php130,000 c. Php150,000
d. Php125,000
10.The taxpayer did not file his ITR for calendar year 2013. He was notified by
the BIR of his failure to file the tax return for which reason he filed his tax
return and paid the tax only after said notice on October 15,2015. The tax
due per return is Php100,000. The total amount due on October 15, 2015
(excluding compromise penalty) is:
a. Php150,000 b. Php155,000 c. Php180,000
d. Php205,000
11.The taxpayer filed on time his ITR for calendar year 2013 and paid
Php100,000 on April 15, 2014. Upon pre-audit of his return, it was disclosed
that he erroneously computed the tax due. The correct amount of tax due is
Php120,000. The taxpayer is assessed for deficiency income tax in a letter of
demand and assessment notice issued on June 15, 2015 calling for payment
on or before July 15, 2015. The amount still due on July 15, 2015 is:
a. Php30,000 b. Php31,250 c. Php35,000
d. Php25,000
12.A corporation filed its ITR and paid the tax for calendar year 2013 with a net
taxable income of Php500,000. Upon investigation, it was disclosed that its
ITR was false and fraudulent because it did not report a taxable income
amounting to another Php500,000. Failing to protest on time against the
prelliminary assessment notice, a final letter of demand and assessment
notice issued on June 15, 2015 calling for payment on or before July 15, 2015.
The amount still due on July 15, 2015 is:
a. Php328,125 b. Php297,500 c. Php262,500
d. Php306,250
13.In the preceding number, assuming that the assessment has become final
and collectible, but the corporation pays the tax assessment only on August
15, 2015, the total amount due (excluding compromise penalty) is:
a. Php332,500 b. Php376,833 c. Php387,917
d. Php 329,500
14.An assessment shall become final if not protested administratively or if such
protest is not filed with the BIR, from receipt of the assessment within
a. 30 days b. 60 days c. 90 days d. 180 days
15.Using the preceding no., relevant supporting documents must also be
presented to the BIR, from filing the protest on the assessment within
a. 30 days b. 60 days c. 90 days d. 180 days
16.An appeal on an assessment may be made to the CTA if the BIR does not act
on the protest within how many days from the taxpayers submission of
documents supporting his protest?
a. 30 days b. 60 days c. 90 days d. 180 days
17.I. The Taxpayer shall respond to a pre-assessment notice and if he fails to
respond an assessment shall be issued.
II. an assessment issued may be questioned administratively with the BIR
a. True true b. True false c. False true d. false false

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QUIZ IN TAXATION REVIEW (TAX REMEDIES, TAX ADDITIONS)

18.Where a return was filed as a general rule, the prescriptive period for
assessment after the date the return was due or was filed whichever is later
is within
a. 3 years b. 5 years c. 7 years d. 10 years
19.Where any national internal revenue tax is alleged to have been erroneously
or illegally collected, as a remedy, the taxpayer shoukd first file an action for
refund withthe
a. Regional Trial Court b. Court of Tax Appeals c. BIR d.
Court of Appeals
20.In case of an assessment of a tax
a. The assessment should be made within 3 years from the date of filing of
the return
b. The assessment should be made within 3 years from the date the return is
due
c. A protest should be made on time, otherwise the assessment becomes
final and executory
d. A protest may be filed anytime before the BIR collects the tax
21.Date of payment of tax erroneously paid April 15, 2013
Date a claim for refund was filed January 15, 2014
Date decision of denial by the BIR was received September 15,
2014
Last day to appeal to the CTA is
a. April 15, 2015 b. January 15, 2015 c. November 15, 2014 d.
October 15, 2014
22.Using the preseding no., if date of decision of denial by the BIR was received
on March 31, 2015, the last day to appeal to the CTA is
a. April 30, 2015 b. April 15, 2015 c. March 31, 2016 d. May 30, 2016
23.Date Assessment was received March 8, 2014
Date petition for reinvestigation was filed with the BIR March 18, 2014
Date filing of documents to support the petition May 8, 2014
Date decision of denial of the petition was received September 28, 2014
That last day to appeal to the CTA is
a. April 15, 2015 b. November 8, 2014 c. December 8, 2014 d.
October 28, 2014
24.Date assessment was received March 8, 2014
Date petition for reconsideration was filed with the BIR March 28, 2014
Date of filing of documents to support the petition May 8, 2014
No decision on the protest is received as of October 30, 2014
The last day to appeal to the CTA is
a. April 15, 2015 b. November 8, 2014 c. December 4,2014 d.
November 30, 2014
25.Date assessment was received March 8, 2014
Date petition for reinvestigation was filed with the BIR March 28, 2014
Date of filing of documents to support the petition May 8, 2014
Date decision of denial by the BIR was received June 10, 2014
Date petition for reconsideration was filed with the BIR June 18,
2014
Date decision of denial of the petition for reconsideration was received
June 28, 2014
The last day to appeal to the CTA is

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QUIZ IN TAXATION REVIEW (TAX REMEDIES, TAX ADDITIONS)

a. July 28, 2014 b. July 20,2014 c. July 10, 2014 d. July


18, 2014
26.Using the above facts, except that the BIR issued an amended decision on
the petition for reconsideration and the amended decision was received on
June 28, 2014. The last day to appeal to the CTA is
a. July 28, 2014 b. July 20,2014 c. July 10, 2014 d. July
18, 2014
27.Which of the following is correct?
a. A protest should be filed by the taxpayer otherwise the assessment
becomes final and can no longer be questiones in court
b. A protest may be filed by the taxpayer anytime before the BIR collects the
tax
c. The assessment should be made by the BIR within five years from the
filing of the return
d. The assessment shall include only tax proper
28.Which of the following is incorrect
a. As a rule, a pre-assessment notice shall be required before an assessment
may be made
b. The taxpayer shall be informed of the law and the facts on which the
assessment is made, otherwise the assessment shall be void
c. The Commissioner may refund a tax even without a claim of refund from
the taxpayer where on the face of the return upon which the payment was
made such a payment clearly appears to have been erroneously made
d. A suit maybe brought even after the lapse of two years from the date of
payment if any supoervening cause arises after payment
29.The following grounds to cancel a tax liability by the commissioner except
a. The tax is unjustly or excessively assessed
b. The administration and collection costs involved do not justify the
collection of the amount
c. A reasonable doubt as to the validity of the claim against the taxpayer
d. Illegal collection of the tax
30.Which of the following is not a requisite to toll the collection of taxes to be
made by the BIR upon proof of the following to the Court of Tax Appeals
a. It will jeopardize the interest of the tax payer
b. It will jeopardize the interest of the government
c. Filing of a bond for at least double the amount of the tax assessed
d. The case is not dilatory
31.Which of the following will not interrupt the running of the prescriptive period
for assessment and collection of taxes?
a. When the commissioner is prohibited from making the assessment or
beginning distraint and levy or a proceeding in court and for thirty days
after
b. When the taxpayer requests for the reinvestigation which is granted by
the commissioner
c. When the taxpayer is out of the Philippines
d. When the taxpayer cannot be located in the address given by himn in the
return

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QUIZ IN TAXATION REVIEW (TAX REMEDIES, TAX ADDITIONS)

PROBLEM: The income tax return of Nicole for 2013 was filed on April 10,
2014. The tax per return was Php3,000 but tax audit by the BIR was
Php5,000. An assessment for deficiency tax was made on April 15, 2017:
1. Was the assessment made on time?_______
2. If the assessment was made on April 20, 2017, what is the defense of the
taxpayer?______
3. Suppose the BIR discovered on December 1, 2025 that the taxpayer filed
a fraudulent return, and the assessment was made on April 20, 2033. Is
the assessment valid?_______
4. Suppose no return was filed and the failure to file the return was known to
the BIR on December 1, 2023. Whithin what time may the BIR make an
assessment?________

PROBLEM: the 2013 net income of University of Catarman, a private


educational institution wa s Php200,000
Tax per return filed on April 15, 2014 (Php200,000x30%) Php60,000
Correct Tax (Php200,000x 10%) 20,000
Excess tax erroneously paid Php 40,000

1. Last day to file claim for refund with the Commissioner of Internal
Revenue is on _________.

2. Supppose the claim for refund was filed on September 10, 2015 and was
denied by the CIR. Decision of denial was received by the taxpayer on
January 10, 2016, what is the remedy of the taxpayer?
3. Suppose claim for refund was filed on September 10, 2015 and the
decision of the CIR denying the claim was received by the tax payer on
April 20, 2016, can the taxpayer appeal to the CTA?__________ why?
_________.

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