Remembering

1. Which of the following statements is true?

a. The power of taxation and eminent domain are both exercisable only by the government and its political
subdivision.
b. The exercise of the power of eminent domain and police power can be expressly delegated to the local
government units by the law making body
c. In police power, the property taken is preserved for public use
d. The power of eminent domain is created by the constitution

Understanding

2. This stems from the principle that we pay taxes for the protection and services provided by the taxing authority which
could not be provided outside the territorial boundaries of the taxing state.
a. The tax imposed should be for public purpose.
b. The power to tax is limited to the territorial jurisdiction of the taxing government.
c. There should be no improper delegation of the taxing power.
d. Exemption of government entities from taxation.

Application

3. A taxpayer gives the following reasons for refusing to pay a tax. Which of his reasons is not acceptable for legally
refusing to pay the tax?
a. That he will derive no benefit from the tax.
b. That he has been deprived of due process of law.
c. That there is lack of territorial jurisdiction.
d. That the prescriptive period for the tax has lapsed.

4. Mapagbigay School, a non-stock non-profit educational institution, bought from Pedro, a resident citizen, his
residential house and lot. Pedro would be using the proceeds of the sale to buy his new residential house and lot. On
the other hand, the school will use the parcel of land to construct a new building for its dormitory for its medical
students. Which of the following statements regarding liability for the payment of capital gains tax is correct?
I. Pedro is liable to capital gains tax. However, if what was sold was his principal residence, he may apply
for tax exemption, provided that he complies with the requirements laid down in the Tax Code.
II. Pedro is liable to capital gains tax because the tax is imposed on the seller; thus, notwithstanding any
exemption enjoyed by the buyer, the tax shall still be imposed.
III. Pedro is not liable to capital gains tax because the sale was made in favor of a non-stock, non-profit
educational institution and that the property will be used for educationally-related functions.
a. I only
b. II only
c. I and II only
d. I and III only

5. When the power to tax is delegated to the local government

a. Only the local executive can exercise the power.
b. Only the legislative branch of the local government can exercise the power.
c. The local executive and the legislative branch of the local government can exercise the power.
d. Neither the local executive not the legislative branch of the local government can exercise the power.

6. The city council passed a tax ordinance imposing an occupation tax or profession on occupation of an “industrial
engineer”. GJ is the only person with such an occupation in the city. Which of the following is correct?
a. GJ can successfully challenge the validity of the ordinance being discriminatory since he is the only one
adversely affected.
b. The ordinance violates the constitutional rule of equality in taxation.
c. The ordinance is a “class legislation” since it does not subject to occupation tax the other industrial engineers.
d. The ordinance is a valid exercise of the council’s power to enact tax ordinance to raise revenue under
the Local Government Code

Remembering

7. Which of the following prescriptive period for the B.I.R. to conduct a tax audit is correct?
 a. Ten (10) years when no return is filed
b. Three (3) years when return filed is false or fraudulent
c. Two (2) years from actual filing of return or from the deadline for filing if the return filed is not fraudulent
d. All of the above

Understanding

8. What is the effect on the tax liability of a taxpayer who does not protest an assessment for deficiency taxes?
a. The taxpayer may appeal his liability to the CTA since the assessment is a final decision of the Commissioner
on the matter.
b. The BIR could already enforce the collection of the taxpayer’s liability if it could secure authority from the
CTA
c. The taxpayer’s liability becomes fixed and subject to collection as the assessment becomes final and
collectible
d. The taxpayer’s liability remains suspended for 180 days from the expiration of the period to protest.

9. The following are administrative remedies available to a taxpayer in connection with collection of taxes, except one:
a. Filing of claim for tax refund or credit
b. Filing a petition for reconsideration or reinvestigation
c. Entering into a compromise
d. Filing of criminal complaint against erring BIR officials or employees

Application

10. The following information was disclosed to you:

Erroneous payment of tax April 15, 2011
Claim for refund was filed Feb. 18, 2012
Receipt of BIR decision denying claim for refund July 5, 2012

The last day to appeal to the Court of Tax Appeals is

a. April 15, 2013

b. August 5, 2012
c. August 4, 2012
d. August 6, 2012

11. Yekka paid her income tax liability for 2012 on April 15, 2013. It was found out later on June 30, 2013 that she
overpaid by more than P 100,000. The last day to file a claim for tax refund is?
a. April 15, 2014
b. April 15, 2015
c. June 30, 2014
d. June 30, 2015

12. Chloe received a final assessment notice (FAN) from the B.I.R. on October 30, 2016. She submitted her protest and
the supporting documents within the time prescribed by the Law. After 180 days, the subsequent step/s available to
her shall be:
I. Elevate the case on appeal to the CTA, alleging inaction of the CIR, within 30 days from the 180 th day
since she submitted the supporting documents on her protest.
II. Wait for the decision of the Commissioner of Internal Revenue (CIR) and if adverse, appeal the case
before the CTA within thirty days
a. I only
b. II only
c. I or II
d. I and II

13. A taxpayer paid excessive tax on April 15, 2000. On December 20, 2001, she filed a written claim for refund. Her
claim was denied by the BIR and she received the denial on March 1, 2002. She filed a motion for reconsideration
with the BIR on March 31, 2002. On April 18, 2002, she received the final denial of the BIR. What will be the
taxpayer’s remedy?
a. The taxpayer has no more remedy against the final denial.
b. File another motion for reconsideration with the BIR within 30 days after the receipt of the final denial.
 c. File an appeal with the Court of Tax Appeals within 30 days after the receipt of the final denial.
d. File an appeal with the Court of Tax Appeals within 15 days after the receipt of the final denial.

Understanding

14. It is important to know the source of income for tax purposes (i.e., from within or without the Philippines) because:
a. Some individual and corporate taxpayers are taxed on their worldwide income while others are taxable
only upon income from sources within the Philippines
b. The Philippines imposes income tax only on income from sources within
c. Some individual taxpayers are citizens while others are aliens
d. Export sales are not subject to income tax

Application

Juan, married, supporting his three (3) minor children had the following data for the current taxable year (Exchange rate $
1 – P 50):
Philippines Abroad
Business income P 1,000,000 $ 20,000
Professional income 400,000 10,000
Salaries 200,000 -
Business and professional expenses 250,000 8,000
Income tax paid - 4,000

15. If Juan is a resident citizen and taxable year is 2018, his income tax payable is:
a. P 434,000
b. P 570,500
c. P 589,000
d. P 509,000

16. Amando, a resident citizen, is employed as a manager of a Regional Operating Headquarters of a multinational
company in the Philippines. His annual taxable compensation income in 2016 is P 1,000,000. He is married but
estranged from his wife. He has, living with him and fully dependent for support, his five (5) minor children, who are
all unmarried and not gainfully employed. What amount could Armando claim as his total personal exemptions
assuming he opted to be taxed using the graduated tax rate?
a. P.0
b. P 50,000
c. P 100,000
d. P 150,000

17. The following data were taken from Emman (single), holding managerial position for 2018 taxable year:
Gross salaries @ P 50,000 per month P 600,000
SSS contributions 12,000
Philhealth contributions 7,200
Pag-ibig contributions 4,800
Union dues 3,000
Withholding tax on compensation income 73,250
Allowances, not subject to liquidation 100,000
Gasoline allowances, subject to liquidation 17,000
13th month pay 50,000
De minimis benefits 12,000

The fringe benefit tax due is

a. P 0
b. P 8,000
c. P 47,059
d. P 53,846

18. The total income tax expense is Juan is

a. P 127,096
b. P 141,000
c. P 170,760
d. P 179,400

19. Albie died leaving an estate worth P 10,000,000. The estate is under administration. In 2017, the properties in the
estate earned a gross income of P 600,000 and the estate incurred expenses of P 150,000. Reyn, one of the heirs,
received P 100,000 and P 120,000 from the 2016 and 2017 income of the estate, respectively.
The income tax payable of estate in 2017 is
 a. P 59,000
b. P 68,000
c. P 110,000
d. P 119,000

20. In 2018, a domestic corporation declared and paid dividends to its shareholders as follows:

To Apol, a resident citizen P 100,000

To Alex, a nonresident citizen 100,000
To George, a resident alien 50,000
To LJ, a nonresident alien engaged in trade in the Philippines 100,000
To Francis, a nonresident alien not engaged in trade in the 80,000
Philippines
To Chen, a domestic corporation 100,000
To a resident foreign corporation 100,000
To a nonresident foreign corporation (with tax sparing) 100,000
How much final tax shall be withheld by the corporation?
a. P 80,000
b. P 90,000
c. P 85,000
d. P 95,000
Analysis

21. Which of the following is wrong?

a. A joint venture for undertaking construction projects is not taxable as a corporation.
b. A consortium for energy operations pursuant to an operating consortium agreement under a service contract
with the government is not taxable as a corporation.
c. A general partnership in trade is not taxable as a corporation.
d. A co-ownership where the activities of the co-owners are limited to the preservation of property and collection
of income from the property is not taxable as a corporation.

22. Andres inherited a piece of land from his father (purchased by the father at P 5,000,000) with a fair market value of P
3,000,000 when inherited. He transferred this property to a corporation where he is the majority stockholder, Omega
Corporation, and received for it newly issued shares of stocks with a par value of P 4,500,000 and fair market value of
P 5,000,000. Which of the following is wrong?
a. The gain to Andres on the transfer is P 2,000,000.
b. The gain to Omega Corporation on the transfer is P 0.
c. The basis of the shares in the hands of Omega is P 5,000,000.
d. There is no gain from any and all transactions.

23. Which of the following is true?

a. The final tax on compensation income of special aliens is 25% of the gross income.
b. Interest income from a foreign currency depository unit in the Philippines of a non-resident alien is not
subject to final tax.
c. Prizes exceeding P 10,000 derived by non-resident alien not engaged in trade or business here in the
Philippines is subject to a final tax of 20%.
d. Share in earnings received by non-resident alien from a domestic partnership is subject to basic tax.

Evaluation

24. Which of the following is taxable?

a. Separation pay received by a 50-year old employee due to the retrenchment program of the employer
b. Retirement pay received from a benefit plan registered with the BIR where at the time the employee
retired, he was 57 years of age, retiring from employment for the first time in his life, and was employed
with the employer for 8 years.
c. Social security benefit received by a balikbayan from employer abroad at age 30.
d. None of the above

25. Romer was selected as the most outstanding “barrio teacher” in San Pedro town of Region VI. His name was
submitted by the school principal without his knowledge. He received a trophy and a cash award of P 50,000. The
amount he received is
a. Partly taxable, partly exempt
 b. Exempt from income tax
c. Subject to basic income tax
d. Subject to final tax

26. A domestic corporation has the following data on income and expenses
Gross business income P 6,200,000
Deductions including SSS and Philhealth contributions of P 150,000 2,500,000
Contributions to the Government for priority project in education 100,000
Contribution to foreign private foundation 100,000
Contribution to domestic charitable organization 190,000
How much is the deductible charitable and other contributions?
a. P 390,000
b. P 290,000
c. P 285,000
d. P211,000

Understanding

27. The following are causes for disinheriting a child. Which one is not?
a. When a child has been found guilty of an attempt against the life of the testator.
b. When a child has been convicted of adultery or concubinage with the spouse of the testator
c. When a child marries a person other than the testator’s choice.
d. When a child leads a dishonorable or disgraceful life

28. One of the following is not a valid donation.

a. An oral donation of watch valued at P 5,000.
b. A donation in writing of a television set valued at P 40,000.
c. An oral donation of a parcel of land valued at P 5,000.
d. A donation of commercial land in a deed of donation valued at P 100,000

Application

29. Following are the properties in the gross estate with their fair market value:
House and lot, family home in Quezon City P 1,500,000
Deposit in the foreign branch of a domestic bank 500,000
Shares of stock issued by a domestic corporation,
certificate kept in the US 1,000,000
Pieces of jewelry 800,000
Receivable, debtor in Cebu 200,000
If decedent was non-resident alien and there is reciprocity, property excluded from gross estate is valued at
a. P 4,000,000
b. P 1,700,000
c. P 700,000
d. P 200,000

30. Aling Nena, administrator, claims the following funeral expenses for a decedent who died in 2017:
Expenses of interment (paid by friend) P 60,000
Cost of burial & tombstone (1/2 paid by relatives) 42,000
Other funeral parlor expenses 36,000
Expenses during the wake 13,000
Obituary notice 7,500
Card of thanks 3,500
Mourning clothing of friends 15,000
Mourning clothing of unmarried minor children 5,000
If the gross estate is P 2,500,000, the allowable funeral expenses is
a. P 75,000
b. P 82,500
c. P 93,500
d. P 174,500

31. A citizen-decedent died in 2018 with the following data:

Philippines USA
 Gross estate P 14,200,000 P 4,400,000
Allowable Deductions 6,400,000 2,200,000
(excluding standard deduction)
Estate tax paid - 150,000
How much is the estate tax payable in the Philippines assuming the decedent is a non-resident citizen?
a. P 132,000
b. P 150,000
c. P 168,000
d. P 300,000

32. Arnie made donations to Railey and Crisel, son and daughter-in-law, on account of marriage, of real property with a
fair market value of P 2,000,000, but subject to a mortgage of P 300,000 that was assumed by the done. The donor’s
tax is
a. P 283,300
b. P 289,400
c. P 278,140
d. P 199,400

33. Manalo, a resident of Dagupan City donated to Arturo a property in Laoag City. The donor’s tax is P 40,000. The
deed of donation was signed in the resident of Arturo in Baguio City. The donor’s tax return must be filed in
a. Dagupan City
b. Laoag City
c. Baguio City
d. Quezon City

Analysis

34. Which of the following events is not subject to donor’s tax?

a. A Filipino citizen donated a parcel of land located in the United States to B, non-resident alien.
b. A resident alien made a gift of P 200,000 to his daughter on account marriage.
c. A non-resident citizen gives his girlfriend a diamond ring worth P 100,000 as a birthday gift.
d. A and B are the only heir of C. A renounces his share of inheritance in favor of B.

35. Which of the following life insurance proceeds shall not be included in the computation of gross estate?
a. Beneficiary is the estate, executor or administrator and the designation of the beneficiary is revocable.
b. Beneficiary is the estate, executor or administrator and the designation of the beneficiary is irrevoacable.
c. Beneficiary is other than the estate, executor or administrator and the designation of the beneficiary is
revocable.
d. Beneficiary is other than the estate, executor or administrator and the designation of the beneficiary is
irrevocable.

Evaluation

36. Pedro, an individual, donated to his friend Ana, his residential lot with a market value of P 1,000,000. Pedro’s cost in
the lot is P 100,000. Ana is financially capable of buying the lot. What tax should be imposed and collected from
Pedro as a result of the transaction?
a. Capital gains tax
b. Donor’s tax
c. Real property tax
d. Capital gains tax and donor’s tax

Remembering

37. Which of the following is not a business tax?

a. Excise tax
b. Value-added tax
c. Other percentage tax
d. Income tax

Understanding
38. One of the following is not a transaction deemed sale
a. Transfer, use or consumption not in the course of business of goods or properties originally intended for sale or
for use in the course of business.
b. Distribution or transfer to shareholders or investors of goods or properties as share in the profits of a VAT-
registered person or creditors in payment of debt.
c. Retirement from or cessation from business with respect to all goods on hand as of the date of such retirement
or cessation.
d. Consignment of goods if actual sale is made within 60 days following the date such goods were
consigned.

39. Which of the following is subject to the 3% common carrier’s tax?

a. Transportation contractors on their transport of goods or cargoes.
b. Common carriers by air and sea relative to their transport of passengers.
c. Owners of animal-drawn two-wheeled vehicle.
d. Domestic carriers by land for the transport of passengers.

Application

40. Gab (self-employed) is a no-vat registered taxpayer who operates a convenience store. The following were provided
for 2018:
Sales of processed food items P 280,000
Sales of non-food items 220,000
Purchases of processed food items 100,000
Purchase of non-food items 80,000
Salaries of helpers 48,000
The percentage tax (tax due) is (above amounts are net of taxes)

a. P 15,000
b. P 27,200
c. P 32,000
d. P 50,000

41. In 2016, Elisha invested P 3,000,000 in the shares of stock of Zian Corporation. The corporation’s shares are listed
and are traded in the local stock exchange. Elisha subsequently sold the shares in 2018 for P 2,500,000 through the
local stock exchange. The percentage tax on the sale is
a. P 12,500
b. P 15,000
c. P 18,000
d. P 25,000

42. Chester Lines, a VAT-registered person, has the following gross receipts in February:
Bus 1 (carriage of goods, P 18,000) P 100,000
Bus 2 (carriage of goods, P 13,500) 165,000
Taxi 90,000
Jeepney 35,500
Cargo truck 45,000
Sea vessel 250,000

Additional information:

 Salaries of drivers and conductor 125,000

 Cost of oil and gasoline 175,000

During the month, Bus 1 was bumped by another bus owned by Caiden Lines and paid Chester Lines P 120,000 for
the damage.

The total business taxes in the preceding number should be:

a. P 10,770
b. P 39,180
c. P 49,950
d. Nil
43. Bianca, a vat registered lessor of commercial spaces received P 1,337,500 rentals during the year from various clients,
net of the 5% creditable withholding tax on the rental income. How much is the correct output vat?
a. P 142,500
b. P 150,000
c. P 154,080
d. P 160,500

44. An owner of warehouse, which used to be vat exempt, because of its annual receipts never exceeded P 1,919,500,
decided to register under the vat system on January 2, 2018. The following data were from the 1 st quarter ending
March 31, 2018:
Rental from warehousing services, net of vat P 336,000
Purchases of supplies in February, gross of vat 112,000
Inventory of supplies, January 1, 2018 100,000
Vat on inventory of supplies, January 1, 2018 10,000
How much was the vat payable for the quarter ending, March 2018?
a. P 26,320
b. P 18,320
c. P 14,000
d. P 0

45. A taxpayer has excess credit as a result of input taxes paid on purchase of capital goods. He may
a. Have his excess tax credit refunded to a VAT registered person.
b. Make his application for refund in the subsequent period following the period during which the purchases were
made.
c. Carry-over and apply his excess tax credit against output taxes in the subsequent period or periods.
d. Use it in payment of any internal revenue tax of a VAT registered person.

Analysis

46. Which of the following carrier shall be subject to value-added tax?

a. Sea carrier classified as Domestic Corporation, voyage is from Philippines to Japan, annual gross
receipts is P 2,000,000.
b. Sea carrier classified as Resident Foreign Corporation, annual gross receipts is P 2,000,000.
c. Air carrier classified as Resident Foreign Corporation, annual gross receipts is P 2,000,000.
d. None of the choices.

47. The Republic of Korea, as an act of goodwill, does not impose business taxes to Philippine carriers. Korean Air is
operating in the Philippines having two flights a week. If you were engaged by Korean Air as its tax consultant and
asked you whether it is liable to percentage tax, which of the following will be your advice?
a. Korean Air is liable to percentage tax based on gross receipts from passengers only.
b. Korean Air is liable to percentage tax based on gross receipts from goods, cargoes and mails only.
c. Korean Air is liable to percentage tax based on gross receipts from passenger, goods, cargoes and mails.
d. Korean Air is not liable to tax percentage based on the principle of reciprocity.

Evaluation

48. The following data were provided by spouses Yaz and Wil. In 2018, Wil’s gross receipts from his practice of
profession was P 2,850,000 while her wife, Yaz, has gross sales of P 2,200,000 derived from her trading business.
Assuming they are not vat registered, will they be subject to vat?
a. Yes, because their aggregate receipts/sales exceeded the vat threshold of P 3,000,000
b. Yes, because their gross receipts/ sales are not specifically exempt from vat as provided in the Tax Code.
c. No, because for purposes of vat threshold, husband and wife shall be considered as separate taxpayers.
d. None of the above

Understanding

49. Statement I – The amount of documentary stamp tax is either fix or based on par or face value of the document or
instrument.
Statement II – Failure to stamp a taxable document shall invalidate the same.
 a. Statement I – True; Statement II – True
b. Statement I – True; Statement II - False
c. Statement I – False; Statement II - True
d. Statement I – False; Statement II – False

50. Statement I – Bank deposit accounts without a fixed term or maturity shall be liable to pay documentary stamp tax.
Statement II – Sale, barter or exchange of shares of stock listed and traded through the local stock exchange is exempt
from documentary stamp tax.
a. Statement I – True; Statement II – True
b. Statement I – True; Statement II - False
c. Statement I – False; Statement II - True
d. Statement I – False; Statement II – False

Understanding

51. Statement I – An excise tax which imposes a tax based on weight or volume capacity or any other physical unit of
measurement is called specific tax.
Statement II – An excise tax which imposes a tax based on selling price or other specified value of the article is called
ad valorem tax.
a. Statement I – True; Statement II – True
b. Statement I – True; Statement II - False
c. Statement I – False; Statement II - True
d. Statement I – False; Statement II – False

Application

52. Marcus is a manufacturer of fermented liquors. In making sales, all taxes on the products and transactions are passed
on to the buyers. For purposes of the value added tax, which of the three (3) taxes listed below that he pays forms part
of the gross selling price?
a. Excise tax
b. Value added tax
c. Percentage tax
d. None of the choices

Understanding

53. Provincial, city, municipal and barangay ordinances may impose taxes subject to limitations by the Local Government
Code. The following, except one, are existing taxes thereunder. Which is it?
a. Professional tax
b. Community tax
c. Travel tax
d. Real property tax

Application

54. Jandrei’s residential land is located in Santiago City measuring 500 sq. m. with the following additional information:
 Fair market value in the tax declaration – P 10,000/sq.m.
 Zonal value – P 8,000/sq.m.
 Assessment level – 20%

How much is the taxable value of the land?

a. P 800,000
b. P 1,000,000
c. P 4,000,000
d. P 5,000,000

Evaluation

55. Statement I – One of the fundamental principle governing the exercise of the taxing and other revenue-raising powers
of local government units was that the collection of local taxes, fees, charges and other impositions shall in no case be
let to any private person.
Statement II – Diplomatic and consular representatives are exempt to pay the community tax.
 a. Statement I – True; Statement II – True
b. Statement I – True; Statement II - False
c. Statement I – False; Statement II - True
d. Statement I – False; Statement II – False

Remembering

56. If the aggregate amount of gross income earned by the Senior Citizen during the taxable year does not exceed
_________ as provided under RA No. 10963 (TRAIN Law), he shall be exempt from income tax and shall not be
required to file income tax return.
a. P 100,000
b. P 250,000
c. P 500,000
d. P 1,000,000

Understanding

57. A Senior Citizen shall also be subject to the following internal revenue taxes, except
a. Excise tax on certain goods
b. Documentary stamp tax
c. Estate tax
d. Training fees for socioeconomic programs

58. Statement I – BOI registered enterprises are subject to 5% gross income tax in lieu of national and local taxes, except
real property tax.
Statement II – PEZA registered enterprises are subject to 5% gross income tax in lieu of national and local taxes,
except real property tax.
a. Statement I – True; Statement II – True
b. Statement I – True; Statement II - False
c. Statement I – False; Statement II - True
d. Statement I – False; Statement II – False

Application

59. A PEZA registered enterprise has a registered and an unregistered activity. The MCIT shall apply to
a. Registered activity
b. Unregistered activity
c. Both activities
d. Neither registered or unregistered activity

60. Ace Corporation employs both regular and senior citizen employees and paid the following compensation
Regular employees P 800,000
Senior citizen employees:
With salary grade above poverty level 200,000
With salary grade below poverty level 100,000
The deductible compensation expense is
a. P 1,100,000
b. P 1,115,000
c. P 1,120,000
d. P 1,145,000

61. Which of the following statements regarding discounts allowed to PWDs is incorrect?
a. In case the seller provides promotional discounts, the PWD will have the option to choose either the
promotional discount or the PWD discount.
b. Only the PWD discount is exempted from vat.
c. In cases where the PWD is also a senior citizen (SC), the PWD shall also be entitled to SC discount in
order to maximize the discounts granted under Magna Carta for PWDs and SCs.
d. None of the above

Analysis

62. For BMBE purposes, the concerned officer shall cancel the registration of a BMBE for the following cause, except:
 a. When the BMBE transfers its place of business to another locality.
b. When the value of its total assets as determined exceeds P 3,000,000.
c. When the BMBE voluntarily surrenders its certificate to the issuing officer.
d. When it establishes warehouse outside the locality.

Tariff and CC

Remembering

63. Which of the following is a regular customs duty?

a. Ad valorem customs duties
b. Specific customs duties
c. Mixed or compound customs duties
d. All of the above

Understanding

64. Importation of goods is deemed terminated

a. When the customs duties are paid, even if the goods remain within the customs premises.
b. When the goods are released or withdrawn from the customs house upon payment of the customs duties
or with legal permit to withdraw.
c. When the goods enter Philippine territory and remain within the customs house within thirty (30) days from
date of entry.
d. When there is part payment of duties on goods imported

Application

65. A violation of the tariff and customs laws is the failure to

a. Pay the customs duties and taxes and to comply with the rules on customs procedures.
b. Pay the customs duties and taxes or to comply with the rules on customs procedures.
c. Pay the customs duties and taxes.
d. Comply with the rules on customs procedures.

Remembering

66. As provided by the Tax Code, the chief officials of the BIR shall be composed of
a. 1 Commissioner and 4 Deputy Commissioners
b. 1 Commissioner and 5 Deputy Commissioners
c. 1 Commissioner, 2 Assistant Commissioners and 2 Deputy Commissioners
d. 1 Commissioner and 7 Deputy Commissioners

Understanding

67. The exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing taxable property
or income, in order to reduce tax liability. It is otherwise known as tax minimization.
a. Tax exemption
b. Tax evasion
c. Tax avoidance
d. transformation

Application

68. The reciprocal duties of support and protection between the people and the government
a. Basis of taxation
b. Situs of taxation
c. Scope of taxation
d. Theory of taxation

69. A tax must be imposed for a public purpose. Which of the following is not a public purpose?
a. National defense
b. Public education
c. Improvement of sugar industry
 d. None of the choices

70. The (damage, damages) caused by the fire may reach P 5,000,000.
a. Damage
b. Damages
c. Either
d. Neither