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    154 views7 pages

    Tax 8615 MCQ

    Uploaded by

    Angel Dela Cruz Co
    Fff

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 7
    CPA Review School of the Philippines Filing, Penalties and Remedies Dela Cruz /De Vera /Lopex 1. Generally, the following individuals are required to file an income tax return, Who i the exception? Every Filipino citizen residing in the Philippines, '. Every Filipino citizen residing outside the Philippines, on his income ftom sources outside the Philippines. & Every alien residing inthe Philippines on income derived from sources within the Philippines. 4. Every non-resident alien engeged in wade or business inthe Pilippines, 2, This is not an administrative remedy available to a taxpayer in connection with collection of taxes ‘& Filing a petition for reconsideration ot reinvestigation 1, Fling a claim for tax refund or credit ¢. Entering into a compromise 4. Filing a criminal complaint against erring BIR officials or employees 3. Which ofthe following statements is correct? ‘Individuals deriving compensation income are exer . GPPs are exempt from filing IT © Domestic corporations cannot aval ofthe OSD. 4. Resident aliens engaged in business in the Philippines are required to file quarterly ITRs and the annual ITR, from filing ITR. 4, The following are not required to file ITRs, except: ‘& Individual whose sole income has been subjected to final withholding tax. . Individual whose compensation income does not exceed the stautory mininvum wage. © Individual whose gross income from business does not exceed his allowable deductions. 4. Individual with respect to pure compensation income derived for one employer in the Philippines ‘and qualified under the substituted fling of income tax cetum. ‘5. Individual self-employed taxpayers are required to fle their Income Tax Retums: a. Ona yearly basis, once a year ', Ona quarterly basis, non-cumulaive system, ©. Ona quarterly basis, cumulative system 4. Ona quarerly basis, cumulative system, and on a yeerly basis once a year (6. The individual income tax return ofa fixed eamer (employee) is filed cn or before April 15 ofthe current taxable year. © May 15 ofthe current zasable year . April 1S ofthe following taxable year. 4, May 15 of the following taxable year 7. A resident citizen taxpayer is allowed to pay his income tax due on te installment basis if '. Basic income tax is P2,000 or below ¢, Basic income tax is over PS,000 , Basic income tax is over P2,000 4. Basie income ax is over P1,000 8. Where compromise penalties are not allowed ‘& Failure to preserve or keep books of accounts and accounting records ', Failure to keep books of accounts or records in a native language of in Emguish Failure to have books of accounts audited und have financial statements attached to income tax return certified by an independent CPA 4. Keeping two (2) sets of books uf accounts or records 9. All oriminal violations may be conipromised: A) Except those already fled ia court B)Except chose mvolving fraud a True, tie . True, false False, tue False, false 10, For ing false and fraudulent return, a surcharge is imposed. 8.25% as criminal penalty 50% as ering 'b. 25% as administrative penalty TAX 86-15 11. A cor.promise for a wx lability onthe ground of financial incapacity to pay shal till involve a payment ‘of tax from the taxpayer ata minimum compromise rte of 8.10% ofthe basic asessed tax ©. 30% ofthe basic assessed tax 20% ofthe basic assessed tax 4.40% ofthe basic assessed tax 12. Using the preceding number, with regard to compromises other than on the ground of financial incapacity to pay, the compromise shall involve a minimum compromise rate of ‘4 10% of the basic assessed tax ©. 30% of the basic assessed tax 20% of the basic assessed tax 4. 40% of the basic assessed tax. 13. A~ The CIR may refund a tex even without « claim for refund from the tospayer where on te face of the retum upon which the payment was made; such payment clearly appears to have been ereneously made. 'B~ When 2 years ae about to expire from the date of payment and no decision has yet been received by the taxpayer on his claim for refund filed with the BIR, the taxpayer may appeal tothe CTA even without ‘waiting forthe decision of the BIR on his claim for refund. 4 The, tue . True, false False, true 4. False, false 14. ~The CIR is authorized to inquire into the bank deposit of a taxpayer who has filed an application for ‘compromise of his tax liability by reason of financial incapacity to pay. 'B~ The CIR is authorized to look into the bank deposit ofa decedent to determine his gross estate, True, true ’. True, false . False, tre 4d. False, false 15. B was employed by A Corp. on the first working day of January 2018 on a part-time basis with a salary ‘010,000. month, He then received his 13" month pay. In September 2018, he accepted another part. ‘time job from B Corp. from which he received a total compensation of P408,000 for tbe year 2018. The ‘conect total taxes were withheld from toth earnings. With regard to the filing ofthe income tax return TTR) forthe year 2018, which ofthe following is tue? 8. Bis exempt from filing his TTR because the correct total taxes have been withheld. >. Bis not exempt ftom filing is ITR because his total compensation income for 2018 came from ‘more than one employer. ‘6. Bis exempt from filing his ITR because his total income for 2018 came from an employer-employee relationship, 4. B is not exempt from filing his ITR because his income came from an employer - employee relationship. 16, The ITR for the calendar year 2017 was due for filing on April 15, 2018, but the taxpayer voluntarily filed his tax return without notice from the BIR. only on July 15, 2018. The tax due per retur amounts 10 100,000. The total amount due on July 15, 2018 (excluding compromise penalty) is: 2.128,000 b.P111,250 ©. 130,000 4. None of the above 17, Using the preveding number, but the ITR is filed om time but through an intemal revenue officer other ‘tan wih whom the retum is required to beled. The ota mount do is 100,000 ».P130,000 ©. 150,000 4,125,000 18. The taxpayer didnot file his TTR for calendar year 2016, He was noifed bythe BIR of his failure to le the tax rere, for which reason he filed his tax return and paid the tax only ate sid notice on October 15, 2018, The tax due per retum is #100,000, The total amount due on October 15,2018 (excluding se penalty) is: 2.173.667 155,000 © 7180,000 4. None ofthe above 19. The axphyer timely filed his ITR, and paid the tax due as shown therein on April 15,2017, The BIR subsequently determined Ua a deficiency ox of 100,000 was sil ue. The BIR seat a leter of demand dnd essessment notice asking to pay Whe deficiency income tx by July 15, 2017, The expayer paid otly/on August 15,2017. The total fount due on August 15,2017 (exchding compromise penalty) is: TAX 86-15 Be 2. P134,667 b.P175,334 o.P84,345 4. None of the above 20. The taxpayer timely filed his ITR, and paid the tax due as shown therein on April 15, 2018. The BIR ‘Subsequently determined that a deficiency tax of 100,000 was stil due, The BIR seat a leiter of demand and assessment notice asking to pay the deficiency income tax by July 15, 2018. The taxpayer paid only om August 15, 2018. ‘The total emount due on August 15,2018 (exchuding compromise penalty) is 2. 7130,667 b.P 129,780 © PLIS,300 4, None of the above 21. The taxpayer timely filed his ITR, and paid the tx due as shown therein on April 15,2017, The BIR ‘subsequently determined that a deficiency tax of P100,000 was still due. The BIR sent a letter of ‘demand and assessinent notice asking to pay the deficiency income tax by July 15, 2017. The taxpayer paid only on August 15,2018, ‘The total amount due on August 15,2018 (excluding compromise penalty) is: a PIS7917 .P159,583 ©. PI75,345 4. None ofthe above 22.4 self-employed taxpayer filed his annual [TR for ealendar year 2018, and paid 100,000. Upon pre- audit of his return, it was disclosed that he erroneously computed the tax due. The correct amount of tax due is 120,000. The taxpayer is assessed for deticiency income tax in a letter of demand and assessment notice issued on June 15, 2020 calling for payment on or before July 15, 2020. The amount still due on July 15, 2020 22,800 £23,000 ©. 935,000 4. None of the above 23. A Corporation filed its ITR and paid the tax for calsndar year 2018 with a net taxable income of 500,000. Upon investigation, it was disclosed that its TTR was false and fraudulent because it did not Feport a taxable income amounting to another P500,000. Failing to protest on time against the Preliminary assessment notice, a final letter of demand and assessment notice issued on lune 15, 2020 ‘calling for payment on or before July 15,2020. The amount still due on July 15, 2020 is: £246,000, b.2297,500 247,500 4 None of the above 24:In the preceding number, assuming that the assessment has becomne fiaal and collectible, but the corporation pays the tax assessment only on August 15, 2020. the total amount due (excluding ‘compromise penalty) is: a. 309,960 2. 9376,833 PBL R50 4. None of the above 25. Am assessment shall become final if not protested administratively or if such protest isnot filed with the BIR from receipt ofthe assessment wichin 30 days b.60 days, ©. 90 days 180 days 26, Using the preceding number, relevant supporting documents must also be presented to the BIR, from fling the protest on the assessment (request for reavetigation) wi 8.30 days 60 days © days 4.180 days 27. An appeal on an assessment may be made to the CTA ifthe BIR doee not act on the protest within how ‘many days from the taxpayer's submission of documents supporting his protest? 8 30days b.60 days ©. 90 days . 180 days 28. A) The taxpayer shall respond to a PAN, and if he fils to respond, a FAN shal be issued. B) An assessment issued may be questioned administratively withthe BIR. a True, true b. True, false False, ue . False, false 29. Where a return was filed, as a general rule, the prescriptive period for assessment after the date the return ‘as due or was filed, whichever is later, is within 23 years .5 years . Tyears 4.10 years 30. Where any national internal revenue tax is alleged to have been erroneously or illegally collected, as & remedy, the taxpayer should first file an action for refund with the ‘& Regional Trial Court b.CourtofTax Appeals. BIR 4. Court of Appeals . TAX 86-15 31. Incase of an assessment of a tax ‘& The assessment should be made within 3 years from the date of filing ofthe feturn. The assessment should be made within 3 years from the date the tum is due. & A proter should be made on time, otherwise the assessment becomes final and executor. 4. A protest may be tiled anytime before the BIR collects the tax. 32. Date of payment of tax erroneously paid Apzil 15, 2016 Date a claim for refund was filed January 15,2017 Date decision of denial by the BIR was received September 15, 2017 Last day to appeal tothe CTA is ‘8 April 1, 2018 b. January 15,2018 @ Novernber 15,2017 4. October 15, 2017 33. Using the preceding number, if the date of decision of denial by the BIR was received on March 31, 2018, the last day to appeal t0 the CTA, 8 April 30, 2018, b. April 15, 2018 © March 31,2019 4. May 30, 2019 34. Date assessment was received March 8, 2018 Date petition for reinvestigation was filed with the BIR March 18, 2018 ‘Date fiting of documents to support the petition May 8, 2018 Date decision of denial ofthe petition was received September 28, 2018 ‘The last day to appeal to the CTA is April 15, 2019 b. November 8, 2018 ¢. December 8,2018 d, October 28, 2018 35, Date assessment was received March 8, 2018 ‘Date petition for reinvestigation was filed with the BIR. March 28, 2018 Date of filing of documents to support the petition May 8, 2018 [No decision on the protest received as of ‘October 30, 2018 ‘The last day to appeal to the CTA is April 15, 2019, b.November 2018 ¢. December 4,2018 4, November 30, 2018 36, Date assessment was received March 8, 2018 Date petition for reinvestigation was filed with tbe BIR March 26, 2018 Date of filing of documents to support the petition May 8, 2018 Date decision of denial by the BIR was received June 16, 2018 Date petition for reconsideration was filed with the BIR June 18, 2018 Date decision of denial ofthe petition for reconsideration was received ‘June 28, 2018 ‘The last day to appeal to the CTA is a July 28, 2018 b. July 20, 2018 July 10, 2018 4. July 18, 2018 37. Using No. 36 above, except thatthe BIR issued an amended decision on the petition for reconsideration, and the amended decision was received on June 26, 2088. ‘The last day to appeal to the CTA is a July 28, 2018 . July 20, 2018 July 10, 2018 4. duly 18, 2018 38. Which of the following is corrat? A protest should be filed by the uxpayer, otberwist the aamesument becomes final snd can 20 longer be questioned in court . A protest may be filed by the taxpayer anytime before the BIR collects the tax. ‘¢. The assessment shoud be mace by the BIR withun five vears from the filing ofthe rem 4d. The assessiment shall include on!) the tax proper. 39. Which ofthe following statements is incorrect? As arule.a pre-assesstient notice skal be required before a inal assessment mabe cade. 1b. The umcpayer sbail be informed of the iam and the fxs on which the awesament is made, ocherwme ‘the assesamect shall be soi. ©. The Commissioner may reftnd & tax even without a clase of refund frum the taxpmer where on ‘he face of the retire upoo which the payment sas made, sh 4 payment clear appear % bane een ‘erroneously made. TAK sess 4. A suit to recover tax previously paid may be brought even afler the lapse of two years from the date of payment, if any supervening cause arses after payment 40. ‘The following are grounds to cancel a tx liability by the Commissioner, except The tax is unjusily or excessively assessed . The administration and collection costs involved do not justify the collection of the amount ‘c. A reasonable doubt as to the validity ofthe claim against the taxpayer 4. egal collection of tax 41, Which ofthe following is nota requisite to tol te collection of taxes to be made by the BIR, upon proof of the following to the Court of Tax Appeals ‘a Itwill jeopardize the interest ofthe taxpayer. '. twill jeopardize the interest ofthe goverameat. ©. Filing of a bond for atleast double the amount of the tax assessed. 4. The case is not dilatory, 42, Which of the following will not interrupt the running of the prescriptive period for assessment and collection of taxes? ‘8. When the Commissioner is prohibited from making the assessment or beginning distait and levy or a proceeding in court and for thirty (30) days ater 1b. When the taxpayer requests tor the reinvestigation which is granted by the Commissioner ‘©. When the taxpayer is out ofthe Philippines 4. When the taxpayer cannot be located in the address given by him in the return 43. The power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, ‘Penalties imposed in relation thereto, or other matters arising under the Tax Code or other laws ‘administered by the BIR is vested with ‘The Commissioner of the BIR. The Court of Tax Appeals b. The Secretary of Finance 4. The Regular Cours 44. Its the official action of an administrative officer in determining the amount of tax due from a taxpayer, or it may be & notice tothe effect that the amount stated therein is due from the taxpayer with a demand for payment ofthe tax or deficiency stated therein, & Tax investigation b. Tax audit ¢, Tax assessments. Tax mapping 45. Which ofthe following is not a remedy of the government in tax collection? aTaxlien — b.Compromise —_e. Forfeiture . Protest 46. The Commissioner of BIR may compromise any internal revenue tax in the following instances, except: ‘a A reasonable doubt as to the validity ofthe claim against the txpayer exists 'b. The financial position ofthe taxpayer demonstrates clear inability to pay the assessed tax (& The tax or any portion thereof appears to be unjustly or excessively assessed 4. The taxpayer has been granted by the SEC or by any competent tribunal a moratorium or suspension of payments to creditors, or otherwise declared bankrupt or insolvent 47. The income tax return of Mr. A for 2013 was filed on April 10, 2014, The tax per retum was P3,000 but tax audit by the BIR was 5,000. Aa assessment for deficiency tax was made on April 15, 2017. Required: ‘a. Was the assessment made on time? ®, Ifthe assessment was made on April 20, 2017, what isthe defense of the taxpayer? ©. Suppose the BIR discovered on December 1, 2025 thatthe taxpayer filed a fraudulent return, and the ‘assessment was made on April 20, 2033. Is the assessment valid? ‘4. Suppose no retum was filed and the failure to file the return was known to the BIR on December 1, 2023. Within what time may the BIR make an assessment? 48. Mr. B filed his 2018 income tax return on April 15,2019. He received an assessment on September 20, 2019, He filed a request for reinvesigation on October 10, 2020. He received the decision of the CIR

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