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Taxation 01
Exercise: Bureau of Internal Revenue

1. The Bureau of the Internal Revenue is under the control and supervision of
a. The Court of Tax Appeals
b. The Bureau of Customs
c. The Department of Finance
d. The Legislative body

2. The Bureau of Internal Revenue shall be composed of:

a. A chairman and three commissioners
b. A chairman and four commissioners
c. A commissioner and three deputies
d. A commissioner and four deputies

3. Which of the following is not a power vested in the bureau of Internal Revenue (BIR)?
a. The assessment and collection of all national internal revenue taxes, fees and charges
b. The enforcement of all forfeitures, penalties and fines
c. The granting of tax exemptions and other incentives to taxpayers
d. The execution of judgments in all cases decided in its favor by the court of tax appeals
and the ordinary courts

4. Which of the following is not an authority granted by law to the commissioner of the BIR?
a. To interpret tax laws and decide tax cases
b. To obtain information, summon, examine and take testimony of persons
c. To make assessments and prescribe additional requirements for tax administration and
enforcement
d. To enact tax laws and amend the same

5. The following are expressed powers of the BIR Commissioner under the tax code:
A. To prescribe real property values
B. To terminate taxable period
C. To inquire into bank deposit accounts
D. To accredit and register tax agent
a. A only c. A & C only
b. A & B only d. A, B, C, and D

6. Which of the following powers of the BIR Commissioner shall not be delegated:
a. The power to recommend the promulgation of rules and regulations by the Secretary
of finance;
b. The power to issue rulings of first impression or to reverse, revoke or modify any
existing ruling of the Bureau;
c. The power to assign or reassign internal revenue to establishments where articles
subject to excise tax are produced or kept;
d. All of the above.

7. The following are constituted agents of BIR Commissioner for purposes of collection of
National Internal Revenue Taxes under the tax code, except:
a. The Commissioner of Customs and his subordinates with respect to the collection of
national internal revenue taxes on imported goods;
b. The head of the appropriate government office and his subordinates with respect to
the collection of energy taxes;
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c. Banks duly accredited by the Commissioner with respect to receipts of payments of

internal revenue taxes authorized to be made through banks;
d. Individuals and general professional partnerships and their representatives who
prepare and file tax returns, statements, reports, protests, and other papers with, or
who appear before the Bureau for the taxpayer

8. Which of the following taxes, fees and charges are deemed to be national internal revenue
taxes?
a. Income tax c. Documentary stamps taxes
b. Excise taxes d. All of these

9. Which of the following taxes, fees and charges are not considered as national internal
revenue taxes?
a. Other percentage taxes c. Donor’s and estate taxes
b. Value-added taxes d. Amusement taxes

10. Statement 1. The power to interpret provisions of the National Internal Revenue Code and
other tax laws shall be under the exclusive and original jurisdiction of the Commissioner of
Internal Revenue, subject to review by the Secretary of Finance.
Statement 2. The power to decide disputed assessment and refunds of internal revenue
taxes is vested in the Commissioner of Internal Revenue, subject to the exclusive appellate
jurisdiction of the Court of Tax Appeals.
a. Only statement 1 is correct. C. Both statements are correct.
b. Only statement 2 is correct. D. Both statements are wrong.

11. The following are grounds wherein the Commissioner may terminate the taxable period?
a. The taxpayer is retiring from business subject to tax.
b. The taxpayer is intending to leave the Philippines.
c. The taxpayer is intending to file a civil case against the Bureau of Internal
Revenue.
d. The taxpayer is intending to hide or conceal his property.

12. Statement 1. The power of the Commissioner of internal Revenue to recommend the
promulgation of rules and regulations by the Secretary of Finance may not be delegated.
Statement 2. The power of the Commissioner of Internal Revenue to issue rulings of first
impression or to reverse, revoke or modify any existing ruling of the Bureau of Internal
Revenue may not be delegated.
a. Only statement 1 is correct. c. Both statements are correct.
b. Only statement 2 is correct. d. Both statements are wrong.

13. Statement 1. The Commissioner of Internal Revenue is authorized to inquire into the bank
deposit of a tax payer who has filed an application for compromise of his tax liability by
reason of financial incapacity to pay.
Statement 2. A compromise for 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 10% of
the basic assessed tax.
a. Only statement 1 is correct. c. Both statements are correct.
b. Only statement 2 is correct. d. Both statements are wrong.
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14. Which statement is correct? In case of a tax erroneously collected

a. A case for refund may be filed with the court simultaneously with the filing of a
claim for refund with the Bureau of Internal Revenue.
b. A case for refund may be filed with the court even without filing a claim for refund
with the Bureau of Internal Revenue.
c. A claim for refund must first be filed with the Bureau of Internal Revenue and a
decision of the Bureau must, under any circumstance, be awaited before a case for
refund may be filed with the court.
d. A claim for refund must first be filed with the Bureau of Internal Revenue and, in a
given situation; a case for refund may be filed with the court without awaiting the
decision of the Bureau of Internal Revenue.

15. Fixing the tax rate to be imposed is best described as a (an)

a. Tax administration aspect
b. Tax legislative function
c. Aspect of taxation which could be delegated
d. Function that could be exercised by the legislative branch

16. Which of the following is considered as a tax administrative function?

a. Collection of taxes
b. Fixing of tax rates
c. Prescribing the date and place of payment of tax
d. Determination of the subject or object of taxation

17. They are issuances signed by the Secretary of Finance, upon recommendations of the
Commissioner of the Internal Revenue that specify, prescribe or define rules and
regulations for the effective enforcement of the provisions of the National Internal Revenue
Code (NIRC) and related statutes.
a. Revenue regulations c. Revenue Memorandum Circular
b. Revenue Memorandum orders d. All of these

18. They are issuances that provide directives or instructions; prescribe guidelines; and outline
processes, operations, activities, workflows, methods and procedures necessary in the
implementation of stated policies, goals, objectives, plans and programs of the Bureau in all
areas of operations, except auditing.
a. Revenue regulations c. Revenue Memorandum Circular
b. Revenue Memorandum orders d. All of these

19. They are issuances that publish pertinent and applicable portions, as well as amplifications,
of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.
a. Revenue regulations c. Revenue Memorandum Circular
b. Revenue Memorandum orders d. All of these

20. Which of the following statements is correct? A CPA can have his certificate automatically
revoked or cancelled upon conviction in a criminal case:
a. For offering to the taxpayer the use of wrong accounting records;
b. For willfully falsifying any audit report;
c. For rendering a report on unconfirmed statements;
d. All of the above.

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Answer key:
1. C
2. D
3. C
4. D
5. D
6. D
7. D
8. D
9. D
10. C
11. C
12. C
13. C
14. D
15. B
16. A
17. A
18. B
19. C
20. D
**end**s