Administrative remedies

1. Which of the following BIR administrative requirements is not correct?

The books of accounts are required to be audited by Certified Public Accountant if the
annual gross receipts or sale is more than P150,000.
2. When a BIR decision affirming an assessment is appealed to the CTA, the BIR's power
to garnish the taxpayer's bank Deposits

is not suspended since the continued existence of government depends on tax

revenues.
3. Given:
Date of tax erroneously paid April 15, 2008
Date of claim for refund was filed with BIR May 20, 2010 No reply from the BIR was
received as of June 30,2011 Which of the following is correct?
no more further recourse to pursue the request for refund
4. Which of the following comes ahead of the others
Subpoena duces tecum
5. The distinction between actual distraint and constructive distraint is that:
In actual distraint, there is a taking of possession, while in constructive distraint, the
taxpayer is merely prohibited from disposing of the property.
6. The following statements are correct, except
The rule of estoppel may be invoked against the government, if the Commissioner did
not make regular assessment for each period.
7. The following are within the Powers of the Internal Revenue Commissioner, except
inquire into taxpayers bank deposit to arrive at an accurate assessment
8. 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
9. In filing a protest with the Bureau of Internal Revenue, what remedies may be availed by
the taxpayer simultaneously?
Reinvestigation or reconsideration
10. Given:
Date of tax erroneously paid April 15, 2012
Date of claim for refund was filed with BIR May 20, 2014
No reply from the BIR was received as of June 30, 2015 Which of the following is
correct?
no more further recourse to pursue the request for refund
11. The following are within the Powers and Duties of BIR, except
Grant tax amnesty
12. On March 30, 2012 Miguel Foods, Inc. received a notice of assessment and a letter of
demand on its April 15, 2009 final adjustment return from the BIR. Miguel Foods then
filed a request for reinvestigation together with the requisite supporting documents on
April 25, 2012. On June 2, 2012, the BIR issued a final assessment reducing the amount
of the tax demanded. Since Miguel Foods was satisfied with the reduction, it did not do
 anything anymore. On April 15, 2017 the BIR garnished the corporation's bank deposits
to answer for the tax liability. Was the BIR action proper?
Yes. The BIR has 5 years from the issuance of the final assessment within which to
collect.
13. The following are within the authority of the BIR Commissioner, except
To enter into tax compromise at an amount which in his judgment is reasonable, if the
reason is financial incapacity of taxpayer or doubtful assessment)
14. In the BIR's investigation of a taxpayer's withholding tax return for the taxable year 2015,
a discrepancy between the taxes withheld from its employees and the amounts actually
remitted to the BIR was found. Out of the P1.5 million taxes withheld from its employees,
only the amount of P 250,000 was remitted to the BIR. The BIR should subject the
taxpayer to a:

Preliminary assessment notice

15. Which of the following tax collection remedies should come first ahead of the others?
Either a or b
16. Which among the following circumstances negates the prima facie presumption of
correctness of a BIR assessment?
Proof that the assessment is utterly without foundation, arbitrary, and capricious.
17. The following are true regarding Networth method of determining income, except
The increase or decrease in net worth is adjusted by deducting all non-deductible items
and adding back there from the non-taxable receipts
18. In which of the following pre-assessment notice is required
When the initial assessment of tax return, less than 30% deficiency was discovered.
19. Which statement is wrong?
None of the above.
20. Which of the following statements is not true?
A tax assessment is necessary to a criminal prosecution for willful attempt to defeat and
evade payment of taxes.
21. The act or process of determining the value of a property or portion thereof subject to
tax, including the discovery, listing, classification, and appraisal of properties.
Assessment
22. It is the taking over of personal property of delinquent taxpayer which are in the
possession of third party, (bank deposit), for purposes of collecting delinquent taxes.
garnishment
23. 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.
24. For filing a false or fraudulent return, a surcharge is imposed. Which of the following is
correct?
50% as administrative penalty.
25. The tax payer was discovered not filing his tax return. Under net worth method of
determining his income, his basic tax deficiency assessed is P1,000,000. Which of the
following statements in not correct?
His surcharge is P250,000
26. A PAN shall not be required in the following, EXCEPT
When the excise tax due on excisable article has been paid.
27. Statement 1. The state can collect the tax by summary proceedings of distraint of
personal property and levy on real property, one after the other, but no simultaneously.
Statement 2. There must be an assessment of a deficiency tax before there can be a
judicial action for collection.
Both statements are false.
28. Which of the following violation cannot be subject to compromise penalties?
Keeping two sets of books of accounts or records.
29. Statement 1: As a general rule, the courts have no authority to enjoin the
collection of revenue taxes.
Statement 2: the Court of Tax Appeals is empowered to enjoin the collection of taxes
through administrative remedies when collection could jeopardize the interest of the
government or taxpayer.
True, true
30. Anion, Inc. received a notice of assessment and a letter from the BIR demanding the
payment of P3 million pesos in deficiency income taxes for the taxable year 2015. The
financial statements of the company show that it has been suffering financial reverses
from the year 2016 up to the present. Its asset position shows that it could pay only
P500,000.00 which it offered as a compromise to the BIR. Which among the following
may the BIR require to enable it to enter into a compromise with Anion, Inc.?

Anion must waive its right to the secrecy of its bank deposits.
31. The following tax cases may be subject of a compromise, except?

criminal violations involving tax fraud, that are already filed in court
32. The information provided by an informer resulted to confiscation of P5,000,000 worth of
Hazardous goods. No tax revenue was recovered, because the
confiscated goods were destroyed.
Which of the following statements is correct?

The informer is entitled to P500,000 reward

33. In filing a protest with the Bureau of Internal Revenue, what remedies may be availed by
the taxpayer simultaneously?
Reinvestigation or reconsideration
34. The following are requisites of valid assessment, except
When the tax deficiency discovered is more than 30%
35. Assessment is a prerequisite for judicial action in which of the following?
I. in the case of failure to file a return
II. in the case of fraudulent return with the intent to evade tax.
 Neither in case i or case II
36. The official action of ascertaining the amount of tax due from a taxpayer, done under the
existing law

Assessment
37. In the following cases the running of prescriptive period for assessment is suspended,
except
When the pre-assessment notice was mailed to the taxpayer
38. The surcharge of 50% on the amount due shall be imposed where there is:

Failure to file a return on time due to wilful neglect.

39. In administering distraint proceedings, if there are no bidders on goods being auction,
the goods are

Purchased by the government

40. Which of the following interest rate is not correct?

24% if the tax assessed is a local tax

41. Which of the following violations is considered as fraudulent?
Failure to file return.
42. Which of the following taxes on importation of goods is not under the Direct
administration of the BIR?
Custom duties
43. Jeopardy assessment is a valid ground to compromise a tax liability
because of doubt as to the validity of the assessment.
44. When is assessment deemed made within the prescriptive period?
When the demand letter is released to the taxpayer within the prescriptive period.
45. The BIR could not avail itself of the remedy of levy and distraint to implement, through
collection, an assessment that has become final, executory, and demandable where
the amount of the tax involved does not exceed P100.00.
46. The Following are administrative in character, except
Imposition
47.