Administrative remedies (protesting of assessment, recovery of excess or erroneously paid

taxes, request for the compromise, abatement or refund or credit of taxes, request for rulings)
1. Statement 1. A pre-assessment notice shall be acquired before an assessment may be
made.
Statement 2. The taxpayer shall be informed in writing of the law and the facts on which
the assessment is made, otherwise the assessment shall be void.

Both statements are true.

2. 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

BIR
3. In 2010, Sally, a fruit market operator in Manila, received an assessment for customs
duties for her imported market equipment in the amount of P75,000. Believing that the
amount is excessive, she paid the same under protest. Because of assurances from her
retained CPA that she stands a good chance of being able to secure a refund of
P50,000, she did not deduct the same anymore from her income tax return. She
deducted only the P25,000 which she believed was due from her. She received the
refund amounting only to P50,000 in 2012. What should have been the proper tax
treatment of the payment of P75,000 in 2010?

Sally should have deducted the total P75,000 custom duties in 2010. When she received
the refund of P 50,000 in 2012, she should have included the amount as part of her
income in 2012.
4. Statement 1. A substantial underdeclaration of taxable sales, receipts or income, or a
substantial overstatement of deductions shall constitute prima facie evidence of a false
or fraudulent return.
Statement 2. A return, statement or declaration filed with the Bureau of Internal
Revenue may not anymore be modified, changed or amended.
First statement is true while second statement is false.
5. Which statement is correct? In case of an assessment of a tax:
A protest should be filed by the taxpayer, otherwise the assessment becomes final and
cannot be questioned anymore in court.
6. Where any national internal revenue tax is alleged to have been erroneously or illegally
collected the taxpayer should first:
File a claim for refund or credit.
7. When a taxpayer erroneously paid a tax in installments, the prescriptive period for a
claim for refund should be counted:
From the date of payment of the last installment.
8. A filed his income tax return for 2009 on April 15, 2010 and paid the tax of P20,000.
Upon audit by the BIR an assessment notice was issued on May 15, 2012 requiring him
to pay a deficiency tax of P40,000 not later than July 15, 2012. A may
Request for an extension of the time to pay the deficiency income tax.
9. In filing a protest with the Bureau of Internal Revenue, what remedies may be availed by
the taxpayer simultaneously?
Reinvestigation or reconsideration
10. Statement 1. The taxpayer shall respond to a pre-statement notice, and if he fails to
respond, an assessment shall be issued.
Statement 2. An assessment may be questioned administratively with the Bureau
Internal Revenue.
Both statements are true.
11. An assessment shall become final if:
Statement 1. The assessment is not protested administratively if the protest is not filed
with the Bureau of Internal Revenue within thirty days from receipt of the assessment.
Statement 2. Relevant supporting documents were not presented to the Bureau of
Internal Revenue within sixty days from filing the protest on the assessment.

Both statements are true.

12.