Chapter 14. Tax Remedies A. TAX REMEDIES, DEFINED 1) On the part of the government, these are courses of action provided by or allowed in the law to implement the tax laws or enforce tax collection; 2) On the part of the taxpayer, these are legal actions which a taxpayer can avail of to seek relief from the undue burden or oppressive effect of tax laws, or as 2 means to check possible excesses by revenue officers in the performance of their duties, B. ASSESSMENT PROCESS TAX AUDIT OR INVESTIGATION ‘The BIR conducts an audit by issuing Letter of Authority (LOA). Letter of Authority ~ is an official document that empowers a Revenue Officer to examine and scrutinize a taxpayer's books of accounts and other accounting records, order to determine the taxpayer's correct internal revenue tax liabilities... In the absence of such an authority, the assessment or examination is a nullity. (CIR vs. Sony Phils, Inc., 635 SCRA 234). In the case of Medicard vs. CIR, G.R. No. 222743 dated April 5, 2017, the SC ruled that “No assessments can be issued or no assessment functions or proceedings can be done without prior approval and authorization of the Commissioner of the BIR or his duly authorized representative through an LOA. The concept of an LoA is therefore clear and unequivocal. Any tax assessment issued without an LOA is a violation of the taxpayer's right to due process and is therefore “inescapably void", INS. RIZED TO ISSUE LO: ‘TAXPAYER PERSON AUTHORIZED Under the jurisdiction of the National Office ‘Commissioner of Intemal Revenue (CIR) Under the jurisdiction ofthe regional offices Regional Director CASES NEEI IT BE CC LOA 1) Cases involving civil or Srna tax fraud which fll under the jurisdiction ofthe National Investigation Division (NID) under the Enforcement and Advocacy Services (EAS) of the BIR; and 2). Policy cases under audit by the special teams in the National Office, ‘ 5534, ______is an official document that empowers a Revenue Officer to examine and taxpayer and other accounting records, in order to Letter of Authority (LOA) Letter Notice (LN) Preliminary assessment notice (PAN) Final assessment notice (FAN) Grote 1; The Bureau of Internal Revenue (BIR) must issue an LOA prior to issuing a a, Onlystatement 1 is comect b. Only statement 2is correct ¢, Both statements are correct 4. Both statements are incorrect 3. _____ is issued if after review and evaluation by the Commissioner or his dul authorized representative, as the case may be, it is determined th: 8, Preliminary assessment notice (PAN) b. Final assessment notice (FAN) c. Final letter of demand (FLD) . Final decision on a disputed assessment (FODA) 4, Asarule, PANisit i. It serves as notice that the a. The taxpayer fails to file a retum b. The taxpayer fles a return but fails to pay the tax . Tax taxpayer pays the tax but the same is insufficient . Allofthe above 5. Preliminary assessment notice isnot requied in the following cases, except: Tax dficiengy is due to mathematica eror Tax deficiency is due o unpaid VAT Tax deficiency is due to unpaid excise taxes Tax deficiency is due to withholding tax 563$A xan amy n= ere teeta a b. Forfeiture e ©. Audit engagement eter 4. Institution of criminal action 7. Bac —— epee a a has been determined between the amount ofsales declared and. b. When a discrepancy has been determined between the tax withheld andthe amount actually remitted by the withholding agent. . When an arte locally purchased or imported by an exempt person has been sold, traded or transferred to non-exempt persons. 4. When the deficiency tax isthe result of mathematical errors in the computations appearing onthe face of the retum. ‘Statement 1: The (FLD)/final assessment notice (FAN) shall be srt comn e - calling for payment at te taxpayer's deficiency tax or taxes _ al atthe fads, aw, es ad gus, fen on wi he is based; otherwise, the assessment shall be void. a. Only statement 4 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect 9. Which ofthe ‘toning pment a. Ifa taxpayer is acquitted in a criminal violation ofthe Tax Code, this aoquital does not exonerate him from his civil liability to pay the taxes. ‘A conviction for tax evasion is not a bar for collection of unpaid taxes. b. cS {o.acximinal prosecution for will atempt to defeat d. Criminal proceedings under the Tax Code is now a mode of collection of intemal Tevenue taxes, fees or charges. 10. Where ae cicnn . Ten years d. Answer not given 11. Alan fie his or2018 on October 15, 2019. The st ay for BIR to assess on a. October 15, 2024 c. April 15, 2022 d. October 14, 2022 12. Donors taretum fora donaon made onJdanuaty 15,2018 was fied o January 31,2018. February 28, 2021 ©. February 14,2021 the prescriptive 564b. January 31, 2024 d, January 15, 2024 43, Based on the preceding number, but assume the and was dove on Mar 31, 20181 a, February 28, 202 . February 14, b. January 31, 2028 d, March 31, 2028 44. MA st and submitted supporting documents with the BIR. Within all the former avait the decision of later before he assumes that the “er «. 60 days b. 90 days 4, 30 days 15. Ifthe taxpayer did not file a retum, what is the prescriptive period forthe issuance of Final _ Assessment Notice? ' a. Three (3) years counted from the time of fling or deadline whichever is earier b. Three (3) years counted from the time of filing or deadline whichever is later ‘c. Ten (10) years counted from the time of filing or deadline for fling whichever is later ts ke om alain‘ aay 16. Rosalie, a , filed her income tax retum for the taxable year in Rosalie Soa arrasenesent oe and ring the [5 but the postmark on the envelope shows ~fe a em is nota false and fraudulent return. Can Rosale raise the a opie gamer 1 non gg, hence, tna ot red on. b. Yes. The 3 ary period started to run on April 15, 2016, hence, it had already expired by May 20, 2019. ©. No. The prescriptive period started torun on March 30, 2016, hence, the 3 year period expired on April 10, 2019. 4. Yes. Since the 3-year prescriptive period started to run on March 30, 2016, it already expired by May 20, 2019. 17. On April 15, 2016, the Commissioner of Internal Revenue mailed by registered mail the final assessment notice and the demand letter covering the calendar with the QC Post Office, Which statement is correct? (2012 Bar Question) ‘a, The assessment notice is void because it was mailed beyond the prescriptive period; b. The assessment notice is void because it was not received by the taxpayer within the three-year period from the date of fling of the tax return; ©. The assessment notice is void if the taxpayer can show that the same was received 56518. On March 30, 2016 Emmett Foods, Inc. it is ee: jether with the requisite supporting documents on BIR issued a final assessment reducing the amount of the tax ee Emmett Foods was satisfied with the reduction, the BIR gamished the corporation's bank deposits to answer forthe tax il (2012 Bar Question)? Yes. The BIR has 5 years from the filing ofthe protest within which to collect ‘fom the issuance of the fnal assessment Tal a ‘i . No. The taxpayer did not apply fora compromise. d. No. Without the taxpayer's prior authority, the BIR action violated the Bank Deposit Secrecy Law. 19. 18, Continental, Inc. dat sued by the Commissioner of Internal Revenue (CIR) for a . The CIR thereupon issued assessment notice (FAN) with letter of demand on April 30, 2018. The FAN was received by the corporation on May 10, 2018, following which or itfled its The CIR denied the protest on the ground fe had alte and executory, the corporation having failed to protest the PAN. s the CIR correct? (2010 Bar Question) a. Yes. The FAN shall become final and executor upon failure ofthe taxpayer to protest the PAN within 15 days from receipt thereof b. No. The c. Yes. The BIR has the sole discretion to accept or deny any protest from the taxpayer. d. None of the above. 20. Omega Corporation received a notice of assessment and a letter from the BIR ene the as to the BIR. Which among the following may the BIR require to enable it to enter ito @ ‘Omega must show it has faithfuly paid taxes before. ‘Omega must promise to pay its deficiency when financially able, to th poo ‘Omega must immediately deposit the 500,000 with the BIR. 21. refers toa plea of re-evaluation of an assessment on the basis of existing it It may involve a question of a. Formal letter of demand b. Preliminary assessment noticeRemedies nt on the basis of a newly reinvestigation. — intends to present in the ‘a question of factor of law or both a. Formalletter of demand b. Preliminary assessment notice Motion for reconsideration 2. oot opt a , whether reconsideration or reinvestigation, specifying newly i ional evidence he intends to present if it is a request for reinvestigation. ° li oF jurisprudence, on which his protest is “d Allotthe above 24, -Asarule, within what period must a taxpayer elevate to the Court of Tax Appeals a denial oft conte fo LAA a, Within 30 days from receipt of the Commissioner's denial of his application for refund. stot exceed? years fom payment b. lich mi c. Within 2 years from payment ofthe income taxes sought to be refunded. 4. Within 30 days from receipt ofthe denial or within two years from payment. %, tio! ENS een ers a xxpayer may appeal his liabilty 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 fixed andl subject to collection as the assessment d. The taxpayer's liability remains suspended for 180 days from the expiration of the period to protest. 26. The taxpayer seasonably fled his protest together with all the supporting documents. It is already or 180 days from submission of the protest but the BIR Commissioner ssitous of an early resolution of his protested assessment, the taxpayer should fle his appeal to the Court of Tax Appeals not a. Augus c. August 15, 2021 [ mo ntn 4. August 4, 2021 567Remedies He received a defic the computation of th : of th Is the containing only ssment is valid; all that Mr. Alvarez has to know is the amount of the tax. t 27. Mr. Alvarez is a asses: b. The: ©. The (r. Alvarez can sill contest i. d. The assessment is invalid because Mr. Alvarez has no way to determine if the computation is erroneous. 28. Which aneng the loving sisamtnens, negates, sna fs romp of a. The BIR assessment was seasonably protested within 30 days from receiot b. No prlinary assessment notice was issued prior to the assessment notice d. The BIR we not include a formal letter of demand to pay the alleged deficiency. 29, Whati th ew doesnot protst an assessmentor a ‘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. ee 4. ‘payers lability remains suspended for 180 days from the expiration of the period to protest. Ds ‘Statement 1: A tax due from the taxpayer whose amount does not justify the expenses to be incurred in collecting it may be compromised. ‘Statement 2: In case of false or fraudulent retum with intent to evade the tax, assessment > ‘thereof and collection may be effected in ve (6) years thereafter. a. Both statements are correct . Only the first statement is correct d. Only the second statement is correct ‘Statement 1: Where the tax withheld as shown on the tax return and the actual tax remitted by the withholding agent to the Bureau of Intemal Revenue (BIR) Screens ter . The taxpayer who filed a protest case has 180 days from the filing of the it tigation to elevate an appeal to the Court of Tax Appeals (CTA) in case the Commissioner of Intemal Revenue (CIR) fails to act on the protest. a. Both statements are corect. Both statemants are not correct 4 Cute second statement is correct 32. Abert received a from the BIR on October 30, 2019. He submitted hi pportng documents within the time preseibed by the Law. , the subsequent : ee ayia” oe sped ote Chk ang nationale CR, within 30 days from day since he submitted the supporting documents on his protest. A at dette Conner orl Reet) anditadverse, ‘appeal the case before the ' within thirty days. a. tonly b. Hlonly c. land It dori or 33. The taxpayer seasonably filed his protest together with all the supporting documents. tis already from submission of the protest but the BIR Commissioner Desirous of an early resolution of his protested assessment, the taxpayer should fle his appeal to the Court of Tax Appeals not later than: a, August 31, 2018 / onth eke eae wm 4. August 4, 2018 34, Spanflex Intl Inc. ecole rote pereounent fear te It seasonably fied "protest with all the necessary supporting documents but the BIR failed to act on the protest. the filing of its protest, ‘Spent sill as not if any, can Spanifiex take? (2011 Bar It may fle a motion to admit af tothe négligence of counsel b. _Itmay no longer appeal since there is no BIR decision from which it could appeal It the and. prove that its failure to appeal was due cd. None. Iis right to appeal to the CTA has prescribed %, tain ste ei pt ramp ot When the taxpayer requests for a reinvestigation which inted by the Commissioner of intemal Revenue; b. When the taxpayer is out of the Philippines; c. When the warrant of cistraint has been duly served upon the taxpayer and no property 569Rennedieg sment 1: A taxretum, statement or decaration fled By a taxpayer be meng Sotomont 2 When alter of aubort o investigation of tax return, statement or declaration has been actully served upon the taxpayer, a. Statements 1 & 2 are false - b. Statement 1 is true but statement 2 is false . Statement 1 is false but statement 2 is true 37. Whi followin ie peociptre period of three (2) years commences to run after the date th retum is due (last day prescribed by law for filing) or filed, whichever comes later, b. Ifthe retum is fled before the last day for fling, the prescriptive period begins to run only from such last day. ‘ Ifthe retumns fled after the last day or due date, the petiod shall be counted from the day the return is filed. | a 3 menses anette pd slat fon ace o.suno20, (a il 15, 2022 d. June 20, 2024 39. Which of the following ls TIS aes Rule: Prescription stars from the day the law is violated and if the same is not known, prescription starts from the discovery of violation thereof. 2 Rule: any provision of the Tax Code shall prescribe after 10 yrs. a. rules are correct b. f*rule wrong, 2% rule correct c. both rules are wrong 40. lich of the following i's When no retum is filed len retum filed is false or fraudulent e actual fling of retum or from the deadline for filing if the retum is not fraudulent. 44. Maroatina fi ‘Tax Retum and paid the tax due thereon on Apri, 2019 The last Internal Revenue to send an assessment is)» a. Apri 1,20 ©. April 18, 2022 b. April 15, 2024 d. April 15, 2029 IS: f A 570Remedies 42. Apolonio filed his Income Tax Retum (ITR) for taxable year 2018 on May 2, 2019. After an investigation, it was discovered that th t. The last ats for the BIR to send an assessment: a. April 15, 2022 c. May 2, 2018 b. May 2, 2022 . April 15, 2018 data for the next three (3) questions Atepate aioed you te klong ome > ing the Income Retur Mar. 28, 2019 Date assessment was received: June 20, 2024 Request for reinvestigation was filed: July 4, 2024 43, The last day for the taxpayer to submit relevant supporting documents is r September 4, 2021 September? 2021 b. July 20, 2021 d. April 15, 2022 44, Assuming thatthe taxpayer submitted the documents supporting his motion on August 26, 2021. The Bureau of Intemal Revenue should act on the protest nat later than a. September 26, 2021 c. February 26, 2021 b. April 15, 2022 4. 45. Based on the preceding number and assuming that the BIR did not act on the protest, the last day for the taxpayer fo appeal tothe Court of Tax Appeals (in case he opted to elevate the case to the CTA after indirect denial) is a. March 22,2014. March 23, 2014 d. April 15, 2016 46. A taxpayer received an assessment notice on January 5, 2021. He files a motion for reconsideration with the BIR on January 15, 2021. Whenis the last day for the submission of complete documents to support his motion for reconsideration? a. February 4, 2021 ¢. January 15, 2021 b. March 16, 2021 41. Statement 1: In the event the taxpayer fails to submit within 60 days the relevant jpporting documents for a request for reinvestigation, the assessment shall become final and executory. fatement 2: All decisions on protest to the FAN, whether the taxpayer's protest is accepted or denied partially or wholly, shall be communicated to the taxpayer through the issuance of a Final Decision on Disputed Assessment (FDDA). a. Only stalement 1 is corect b. Only statement 2 is correct & = statements are incorrect . Statement 1: inna be considered a request for reinvestigation, unless said Protest clearly indicates that the request is for reconsideration. S71cc. Both statements are correct d. Both statements are incorrect 49. A taxpayer disclosed the following information: Date of filing 2018 ITR May 12, 2019 Received assessment of deficiency income tax October 10, 2020 Protest was filed October 30, 2020 Submission of supporting documents December 5, 2020 Received denial of protest ‘The last day to appeal the decision of the BIR to the Court of Tax. nabaae a. June 4, 2021 c. May 19, 2024 binMay20,2021 = d. dune 20, 2004 ry 50. The term hall mean: a. ispuli Netherton a" nor 51. Mang Ben filed an eae The BIR issued a Formal Letter of Demand/Final ete 0 2 which ?% day for the BIR to: is April 15, 2022 4. March 10, 2020 Puce as PH of the statements regarding collection of tax assessr assessment and in case of false or K. a. lonly b. Both | and I c. Monly i 53. The in the a, Retiring from any business subject to tax; b. ci 4, b. April 15, 2020 Intending o leave the country or to remove his property therefrom; Performing an act tending to obstruct the proceedings for collecting the tax due. 572‘The dealer delivered several units of the ‘4. Acar dealer could not pay hs taxes on sales, car to the Bureau of Bee Revenue in payment of the taxes. Which of the following a. Thisisa valid payment of the tax. 'b. This is in effect collections of the tax by distraint. . This isa valid forfeiture 15, A-contract whereby the taxpayer and the government by reciprocal concessions avoid a . Distraint -b, Compromise d. Suspension 56. ne afte flowing vino be subject a comronie?i a, Falure to keeplpreserve ‘accounls and accounting records. b. Failure to keep books of accounts or records in a native language or English. ¢, Failure to have books of accounts audited and have financial statements attached to income tax retum certified by independent CPA SF Sateen 1. The Commissiofer of Intemial Revenue is authorized to inquire into the bank 10 has fled an application for compromise of his tax lability by inancial incapacity to pay. Siatement 2. A compromise for a tax liabilty on the ground of financial incapacity to pay shall stillinvolve a post ‘of tax from the taxpayer at a minimum compromise a. First statement is true while second statement is false. b. First statement is false while second statementis true. d. oy statements are a 58. Fortuna Hotel Inc. cea Your acting pat J Be r= File a claim for refund with the years from August 29, 2020. File a claim for refund with the BIR within three (3) years from April 15, 2021 File a claim for refund with the BIR within two (2) years from August 29, 2020. 58, Where to have been erroneously or illegally ‘the cea and BCR b. File an action for refund with the RTC. ©. File an action for refund with the CTA d._Answernot given 573Remedies ©. 5years b. 3 years 4.7 years 61. Bam paid his income tax liability REARS Itwas found out later on June 30, 2018 that he overpaid by more than P'100,000, The last day to flea claim for tax refund is? . June 30, 2015 45,2021 June 30, 2016 62. Assuming his ola in the precedi s received per a. Appeal ‘of Tax Appeals on or before May 18, b. Appeal to Court of Tax Appeals on or before May 20, 2020 c. File a motion for reconsideration on or before May 30, 2020 4. Nomere remedy since the 63. Mr, Bong fied his 2018 income tax retum and paid the tax due on Apri1, 2019, In case lst chy wo edtepienesindiegs cc, April 1, April 15, 2021 d. April 15, 2022 & ° ek a ST ENP tena riinboes fwo (2) years from the date of first installment payment. |. The a db. c. Five (5) years from the date of first inst payment d. Five (5) years from the date of second installment payment. 65. Asa in hepato mua ipeye eae ne Couto Texas a denial of his application for refund of income tax overpayment? (2011 Bar Question) a. Within 30 days from receipt of the Commissioner's denial of his application for refund. bina em eaten ich i Within 2 years from payment ofthe inoome taxes sought to be refunded. d. . Within 30 days from receipt ofthe denial or within two years from payment. the written claim for fr or es nt ey or the failure on the pai missioner to act on the te einai alannilermmn = 29 Within tity (30) days after fing the administrative claim with the BIR; Within sity (60) days after fling the administrative claim with the BIR; Within one hundred twenty (120) days after fling the administrative claim with the BIR;income tax retums and payment of quarterly income jons are mere installments and therefore, not the basis in computing the prescriptive period for refund, * Degen from source (withholding on wages), the i fund is counted from the date it falls due atthe end of the taxable year. a. First statement is true while second statement is false. b. First statement is false while second statement is true. & Both statements are false. 68, Amount oftax per ITR 30,000 Withholding tax 20,000 ‘installment payment March 28, 2020 eae a claim refun Zz ea a. March 28, 2022 b. April 15, 2020 pamiee 2025 69, The following information was disclosed to you: Erroneous payment of tax April 15, 2020 Claim for refund was filed pa 48,2021 Receipt of BIR decision denying claim for refund Te nape te Cs Ta ope bs a — ee . August 6, 2024 {4 . April 15, 2022 7, ch sstnent scare? noes ofataxeroneni colt, a. Accase for refund may be filed with the court simultaneou: Se nih the filing of a claim for refund with the Bureau of Intemal Revenue. b. A case for refund may be filed with the court even without filing a claim for refund with the Bureau of Internal Revenue. ©. A dlaim for refund must first be filed with the Bureau of Intemal Revenue and a decision of the Bureau must, under any circumstance, be awaited before a case for Tefund may be filed with the court. aA must first elon he m1: Teleampiasonepstsasanen witout a dle fae fom es where on the face of the retum upon which the payment was made, such er nt clearly appears to have been erroneously made. Statement 2. be brought for refund of tax after two years from the date of payment, regardless of any supervening cause that may arise after payment. b. Both statements are wrong. ¢, First statement is correct while second statement is wrong. d. First statement is wrong while second statement is correct. 575Remedies CIVIL PENALTIES - 25%; 50% Surcharge 72. In addon tothe basic tax assessed onthe taxpayer, the folowing civil penates Wil agg. a. lonly b. Honly 4. Neither I nor 73._Inwhich ofthe following shall a |. Wilful neglect to fle the return on ime |. Fling of tax return after prior notice in writing from thé BIR ¢. Land ll oniy . andl only 4. | Mand 74. In which of the 1d? oon Failure to file and pay the tax due on time ¢. llonly : . Land Ill only 4. |, and 75. Invihich ofthe following shall 225% surcharge be calcd? iling a retum with an internal revenue officer other than those with whom the retum oe: required tobe fled, unless authorized by the Commissioner of Intemal Revenue, oe Failure to pay the deficiency tax within the time prescribed forts payment nthe natice of assessment . 8 Failure to pay the full or pat ofthe amount of tax shown on any return, the full amount of ae for which no retum is required to be filed, | 78. Satonent 1: There is simple neglect if the taxpayer voluntary files the retum after the deadline without notice from the BIR. ‘Statement 2: The applicable surcharge in statement 1 shalllbe 50%. a statement 2 is correct c. Both statements are correct d. Both statements are incorrect mt ‘Statement 1: Overstatement of more than 30% of allowable deductions isa prima facie vidence of false or fraudulent return. Statement 2: The applicable surcharge in. statement 4 shall be 50%. a. Only statement 1 is correct b. Only statement 2is conect 7 Boh ‘statements are ramet 576Remedses |. Statement of more. , receipts or income is 1a facie ‘ ferent Z The applicable gushes sb bg 5%, a, Only statement 1 is cor ’ b, Onl d. Both statements are incorrect 79. A cl penalty of 50% of the basic taxis imposed in case of - ‘a. Failure to file the retum on time. b. Filing the return with unauthorized revenue officer. allure fo pay the deficiency tax within the time prescribed for payment. 80. In which of the folowing cases where the civil penalties 0f'25% or 50% imposed by the 2 in case'a false or fraudulent return is wilfully made. b. Failure to pay the full amount of tax shown on any retum required to be filed under the law. Fate or ita neglect to file the tax return within the period prescribed by law. Computation of Deficiency and Delinquency Interest at. i 1, shall be assessed and collected ti: Full payment thereof. b. Upon issuance of a notice and demand by the Commissioner or his duly ethorized representative. ° reo! o an and dard bythe Commissioner 1¢e of a notice and demand by the Commissioner or his duly aithorized representative, whichever comes later. a. The amount of the tax due on any retum to be filed b. a amount of the tax due for which no retum is required. ° a al nae authorized d. Ha al Use the folowing data forthe next four (4) ‘A company has been assessed of deficiency income tax of P1,000,000, exclusive of interest and surcharge for 2018 taxable year, The tax liability has remained unpaid despite the lapse of June 30, 2020, the deadline for the payment stated in the notice and demand issued by the Commissioner. Payment was made by the taxpayer on Feb. 10, 2021.Retuedieg 83. The correct amount of surcharge, if any, shall be: a. P120,000 c, P500,000 d. nil 84. The correct amount of deficiency interest shall be: a. P103,215.09 ¢, P248,530.16 b. P145,315.07 d. Pt,498,530.16 85. The correct amount of delinquency interest shall be: c. P248,530.16 . P145,31507 =. PY, 498,530.16 86. The total amount due on Feb. 10, 2021 shall be: a. P103,215.09 . P248,530.16 b, P145,315.07 d. P1498,530.16 87. The rate of deficiency and delinquency interest upon the effectivity of the TRAIN Lawis: Deficiency interest Delinquency interest a 12% 20% 20% 12% an 4: Double imposition of both deficiency and delinquency interest is applicable Under Sec. 249 of the Tax Code prior to its amendment under RA 10963 (TRAIN Law). fement 2: IN Law, in no case shall the deficiency and delinquency i imposed simuttaneously. @. Only statement 1 is correct b oy statement j iS pores 1. Both statements are incorrect, 578