1.

Compromise penalties are not allowed for:

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 set of books of account or records

2. This is not an administrative remedy available to a taxpayer in connection with

collection of taxes
a. filling a petition for reconsideration or reinvestigation
b. filling a claim for tax refund or credit
c. entering into a compromise
d. filing a criminal complaint against erring BIR officials or employees

3. 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
b. 20% of the basic assessed tax
c. 30% of the basic assessed tax
d. 40% of the basic assessed tax

4. Using the preceding no., with regard to compromise 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
b. 20% of the basic assessed tax
c. 30% of the basic assessed tax
d. 40% of the basic assessed tax

5. An assessment shall become final if not protested administratively, 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
6. 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

7. 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 taxpayer’s submission of documents
supporting his protest?
a. 30 days
b. 60 days
c. 90 days
d. 180 days

8. When a return was filed, as a general rule, the prescriptive period for assessment
after the date return was due or was filed, whichever is later, is within
a. 3 years
b. 5 years
c. 7 years
d. 10 years

9. Where any national internal revenue tax is alleged to have been erroneously or
illegally collected, as a remedy, the taxpayer should first file an action for refund
with the
a. regional trial court
b. court of tax appeals
c. BIR
d. court of appeals

10. In case of an assessment of a tax

a. the assessment should made within 3 years from the date of filing of the
return
b. the assessment should made within 3 years from the date of return is due
c. a protest should be made on time, otherwise the assessment becomes final
and executory
d. a protest may be filed any time before the BIR collects the tax

11. Date assessment was received - March 8, 2007

Date petition for reconsideration was filed with the BIR - March 18, 2007
 Date filing of documents to support the petition – May 8, 2007
Date decision of denial of the petition was received – September 28, 2007

The last day to appeal to the CTA is

a. April 15, 2008
b. November 8, 2007
c. December 8, 2007
d. October 28, 2007

12. A car dealer could not pay his taxes on sales. The dealer delivered several units
of the car to the Bureau of Internal Revenue in payment of the taxes. Which of the
following statements is correct?
a. there is a valid payment of the tax
b. there is in effect a collection of the tax by distant
c. there is a valid forfeiture of property
d. this is not valid procedure for collection of the tax

13. Which of the following is correct

a. a protest should be filed the taxpayer, otherwise the assessment becomes
final and can no longer be questioned 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

14. CDE corporation filed its income tax return for the calendar year 2003 on April
10, 2004. The return was not false or fraudulent, the last day for the BIR to collect
if without prior assessment is
a. April 10, 2007
b. April 15, 2007
c. April 10, 2009
d. April 15, 2009

15. Using the preceding number, if assessment was made on April 10, 2007, the
last day to collect is
a. April 10, 2010
b. April 15, 2010
c. April 10, 2012
d. April 15, 2012
16. A suit questioning the validity of a tax statute or law is:
a. taxpayer’s suit
b. derivative suit
c. class suit
d. representative suit

17. Statement 1 – an individual may employ either calendar year or fiscal year as
basis for filing its annual, income tax return
Statement 2 – the return of any individual; shall be filed on or before the 15 th day
of April of each year covering income for the preceding year.
a. true; false
b. true; true
c. false; true
d. false; false

18. The authorities of the Commissioner include the following except:

a. Compromise the payment of any internal revenue tax
b. Abate a tax liability
c. Credit or refund tax that had been erroneously received
d. Inquire into bank deposit

19. What are the means employed in the assessment of taxes, Except?
a. examination of tax return (tax audit)
b. inventory taking surveillance and use of presumptions gross sales or
receipts
c. prescription of real property values
d. examination of bank deposits
e. requiring of additional documentary evidences

FALSE 20. Assessment of taxpayers with unpaid or deficiency tax is the first stage
of a tax audit.

TRUE 21. Tax compliance verification drive may also identify taxpayers to be
subjected to regular audit

TRUE 22. Mathematical computations of income tax due and payment can be done
on a pre-audit process.

FALSE 23. Tax audit process starts with the conduct of the audit examination
FALSE 24. The LA must be served to the taxpayer within 60 days from its date of
issuance.

TRUE 25. Revenue officers have up to 120 days counted from the date of receipt
of the ElA by the taxpayer in which to conduct the audit and to submit his report of
investigation.