1.

What is the minimum compromise rate if the ground for compromise is financial
incapacity? 10% of the basic assessed tax
2. Which of the following is a ground for abatement of tax? The tax appears to be unjustly
or excessively assessed
3. Tabag filed his 2017 Income Tax Return and paid the tax due thereon on April 1, 2018.
The last day for the Bureau of Internal Revenue to send an assessment is – None of the
above
4. Which of the following violations cannot be subjected to compromise penalties? Keeping
two sets of books of accounts or records
5. It is defined as the contract between the government and the taxpayer to settle the
liability at a lower amount. - Compromise
6. The powers of the Commissioner of Internal Revenue include the following except:
Inquire into the bank deposits of a taxpayer
7. A notice to the effect that the amount therein stated is due from a taxpayer as a tax with
a demand for payment of the same within a stated period of time – Assessment
8. 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? 180 days
9. In which of the following cases will a PAN not be required? There is a mathematical error
in the computation of taxes
10. What is the prescriptive period for filing claim for tax refund of national internal revenue
taxes? Within 2 years from the date of payment of tax
11. Which of the following is not an extrajudicial remedy of the government against the
taxpayer? Filing of civil case in court
12. It is the official action of an administrative officer in determining the amount of tax due
from a taxpayer, or it may be a notice to the effect that the amount stated therein is due
from the taxpayer with a demand for payment of the tax or deficiency stated therein. Tax
Assessment
13. What is the prescriptive period for collection of national internal revenue taxes? Within 5
years from the finality of assessment of tax
14. Which type of formal protest filed by a taxpayer before BIR Commissioner requires the
taxpayer to submit documentary evidence to BIR Commissioner? Request for
reinvestigation
15. It is an official document that empowers a Revenue Officer (RO) to examine and
scrutinize a taxpayer's books of account and other accounting records, in order to
determine the taxpayer's correct internal revenue tax liabilities. - Letter of Authority
16. Within how many days should a taxpayer protest to the FAN? 30 days
17. Which of the following statements is incorrect? As a rule, a pre-assessment notice shall
be required before a final assessment may be made
18. A Final Assessment Notice (FAN) shall be issued within _ after the expiration of the
period to file the reply to the PAN or after receipt of reply to the PAN. - 15 days
19. The last day for the taxpayer to submit relevant supporting documents is _______?
None of the above
20. Which of the following will not interrupt the running of the prescriptive period for
assessment and collection of taxes? When the Commissioner is prohibited from making
the assessment or beginning distraint and levy or a proceeding in court and for thirty (30)
days after
21. Abby - How much should Abby repost as income in 2018? P150,000
22. Chibitatat Corporation - If the corporation is a domestic corporation and it opts to claim
the tax paid abroad as deductions from gross income, its income tax payable is:
P825,000
23. ABC Corporation - Compute for the income tax due if ABC opted to claim the foreign tax
credit as a deduction? P207,900
24. ABC Corporation - How much is the income tax payable of ABC assuming that foreign
income taxes are claimed as tax credit? P156,600

Gina, a real estate dealer sold a house and lot for P600,000 on November 20, 2018. The
cost of the property is P450,000. Terms are (1) Down payment of P100,000 and (2)
Balance: Payable monthly P50,000 beginning January 20, 2019.

25. How much is the income subject to income tax in 2018? P25,000
26. How much is the income subject to income tax in 2019? P125,000
27. A taxpayer - Determine the capital gains tax for 2019. P36,000
28. A taxpayer - Determine the capital gains tax for 2018. P12,000
29. Mr. A, a real estate dealer, sold real estate for P2,000,000 on November 30, 2019. The
cost of the property was P1,300,000. The terms of the sale were as follows: (1) Down
payment of P400,000 and (2) P100,000 monthly installment beginning December 2019
until fully paid. How much is the income to be reported in 2019? P175,000
30. Ms. Cruz - How much is the capital gain tax for the year 2018? P83,7000