InTax Quiz 7

1. Statement 1: The Bureau of Internal Revenue (BIR) has as its powers and duties the assessment and collection
of the national internal revenue taxes, fees, and changes and the enforcement of all fortitudes, penalties, and fines
connected therewith.

Statement 2: The Bureau of Customs (BOC) has its powers and duties the assessment and collection of awful
revenues from imported and exported articles and all other dues, fees, charges, fines, and penalties accruing under
the tariff and customs laws.
a. Both statements are correct.
b. Both statements are wrong.
c. Statement 1 is correct but statement 2 is wrong.
d. Statement 2 is correct but statement 1 is wrong.

2. Taxation could be exercise by the following except one. Which one?

a. Judiciary
b. Legislative
c. Local government unit
d. President of the Philippines, in certain cases.

3. The commissioner of the Internal Revenue (CIR) is prohibited by law to look into the bank accounts of taxpayer,
except when:
a. Taxpayer is accused of heinous crime
b. Taxpayer did not invoke his right to privacy during the tax audit.
c. Taxpayer applies for compromise on tax obligation on account of financial incapacity.
d. The CIR has reason to believe that taxpayer has filed a false or fraudulent return.

4. The deductible expenses of an estate may consist of:

a. Deductible expenses allowed to an individual taxpayer
b. Income distributed to beneficiaries
c. Both (a) and (b)
d. Neither (a) nor (b)

16. How much is the gross estate if the property relationship is conjugal partnership of gains is:
a. P2,600,000 c. P1,950,000
b. P3,600,000 d. P2,200,000

Car acquired before marriage by Arthur P 300,000

House and lot acquired during marriage 1,500,000
Personal properties inherited by Arthur during marriage 250,000
Income earned from the land inherited by wife
(25% of which was earned after death) 150,000
Gross Estate 2,200,000