BUSINESS AND TRANSFER TAX

REFRESHER 2 BIR and INTERNAL REVENUE TAXES

NAME
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1 Assessment and collection of taxes are functions of A
A Executive branch of the govt
B Legislative branch of the govt
C Judiciary branch of the govt

2 the main source of government revenue is from collection of A

A Internal Revenue taxes
B Custom duties
C Local taxes

STATEMENT 1, Tax case must first be administratively decided by the

3 Commissioner of BIR before it could be legally raised to the court of tax
appeals for resolution. A
STATEMENT 2, All tax cases requiring court decision must first be resolved in
the court of tax appeals.
A TRUE, TRUE
B TRUE, FALSE
C FALSE, TRUE
D FALSE, FALSE

4 STATEMENT 1, Financial incpability of the taxpayer could be the justification

for the cancellation of his tax liability. C
STATEMENT 2, A tax compromise is a tax remedy that could be offered by
the taxpayer which if acceptable by the Commissioner will settle his tax
liability.
A TRUE, TRUE
B TRUE, FALSE
C FALSE, TRUE
D FALSE, FALSE

5 The least amount that could legally be accepted by the BIR Commissioner as
tax compromise for P1,000,000 tax deficiency is C
A P500,000
B P400,000
C P100,000
D P50,000

6 STATEMENT 1, All tax compromise must be evaluated by the Evaluation

Board before it clould be legally accepted. D
STATEMENT 2, The BIR Commissioner should not be part of the Evaluation
Board if the basic tax deficiency to be settled is more than P1,000,000.
A TRUE, TRUE
 B TRUE, FALSE
C FALSE, TRUE
D FALSE, FALSE

7 The following are Internal Revenue Taxes, except C

A excise tax on sin products
B documentary stampt tax
C custom duties
D donor's tax

8 The following are classified as business taxes, except B

A excise tax on sin products
B documentary stampt tax
C VAT
D OPT

9 The P1,000,000 reported income is 60% earned outside the Philippines.

STATEMENT 1, The income taxable with Philippine income tax is P1,000,000
if the income earner is a resident foreign corporation. D
STATEMENT 2, The income that is exempt from Philippine income tax is
P400,000 if the income earner is an alien who is doing business in the
Philippines.
A TRUE, TRUE
B TRUE, FALSE
C FALSE, TRUE
D FALSE, FALSE

10 STATEMENT 1, Importations of foreign goods are in general subject to

Philippine business tax. A
STATEMENT 2, Exports of Philippine goods in general are not liable to
Philippine business tax.
A TRUE, TRUE
B TRUE, FALSE
C FALSE, TRUE
D FALSE, FALSE
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