ST.

VINCENT COLLEGE OF CABUYAO

Brgy. Mamatid, City of Cabuyao
Laguna 4025

Remedies of the State and the Taxpayer

1. When will compromise penalties is not allowed?

a. Failure to preserve or keep book of accounts and accounting records
b. Failure to keep books of accounts or records in a native language or in English
c. Failure to have book of accounts audited and have financial statements attached to income tax return certified by an
independent CPA
d. Keeping two (2) sets of books of records.

2. Tax violations may be compromised:

A.) Except those already filed in court
B.) Except those involving fraud

a. True, True
b. True, False
c. False, True
d. False, False

3. For filing a false and fraudulent return, a surcharge is imposed at:

a. 25% as criminal penalty
b. 25% as administrative penalty
c. 50% as criminal penalty
d. 50% as administrative penalty

4. This is not administrative remedy available to a taxpayer in connection with collection of taxes
a. Filing a petition for reconsideration or reinvestigation
b. Filing a claim for a tax refund or credit
c. Entering into a compromise
d. Filing a criminal complaint against erring BIR officials or employees

5. A compromise for a tax liability on the ground of financial incapacity to pay shall still involve a payment of tax from the taxpayer
at a minimum compromise rate of
a. 10% of the basic assessed tax
b. 20% of the basic assessed tax
c. 30% of the basic assessed tax
d. 40% of the basic assessed tax

6. Using the preceding number with regard to compromises other than on the ground of financial incapacity to pay, the compromise
shall involve a minimum compromise rate of
a. 10% of the basic assessed tax
b. 20% of the basic assessed tax
c. 30% of the basic assessed tax
d. 40% of the basic assessed tax

7. Statement 1: The CIR may refund a tax eve without a claim for refund from the taxpayer where on the face of the return upon
which the payment was made; such payment clearly appears to have been erroneously made.
Statement 2: When 2 years are about to expire from the date of payment and no decision has yet been received by the taxpayer
on his claim for refund filed with the BIR, the taxpayer may appeal to the CTA even without waiting for the decision of the BIR
on his claim for refund.
a. True, True
b. True, False
c. False, True
d. False, False
8. Statement 1: The CIR is authorized to inquire into the bank deposit of a taxpayer who has filed an application for compromise
of his tax liability by reason of financial incapacity to pay.
Statement 2: The CIR is authorized to look into the bank deposit of a decedent to determine his gross estate.
a. True, True
b. True, False
c. False, True
d. False, False

9. An assessment shall become final if not protested administratively, if such protest is not filed with the BIR, from receipt of the
assessment within
a. 30 days
b. 60 days
c. 90 days
d. 120 days

10. Using the preceding no., relevant supporting documents must also be presented to the BIR, from filing the protest on the
assessment within
a. 30 days
b. 60 days
c. 90 days
d. 120 days

11. 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?
a. 30 days
b. 60 days
c. 90 days
d. 180 days

12. Statement 1: The taxpayer shall respond to a pre-assessment notice, and if he fails to respond, an assessment shall be issued.
Statement 2: An assessment issued may be questioned administratively with the BIR.
a. True, True
b. True, False
c. False, True
d. False, False

13. Where a return was filed, as a general rule, the prescriptive period for assessment after the date the return was due or was filed,
whichever is later is within
a. 3 years
b. 5 years
c. 7 years
d. 10 years

14. 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
a. Regional Trial Court
b. Court of Tax Appeals
c. BIR
d. Court of Appeals

15. In case of an assessment of a tax

a. The assessment should be made within 3 years from the date of filing of the return
b. The assessment should be made within 3 years from the date of return is due
c. A protest should be made on time, otherwise the assessment becomes final and executory
d. A protest may be filed any time before the BIR collects the tax.
16. No withholding tax shall be required where the total compensation income
a. Does not exceed the statutory minimum wage or P5,000 a month whichever is lower
b. Does not exceed the statutory minimum wage or P5,000 a month whichever is higher
c. Does not exceed the statutory minimum wage or the total basic personal exemptions whichever is higher
d. Does not exceed P5,000 month or the total basic personal exemption whichever is higher.

17. Which of the following is correct?

a. A protest should be filed by the taxpayer, otherwise the assessment becomes final and can no longer be
questioned in court
b. A protest may be filed by the taxpayer any time before the BIR collects the tax
c. The assessment should be made by the BIR within five years from the filing of the return
d. The assessment shall include only tax proper.

18. Which of the following will not interrupt the running of the prescriptive period for assessment and collection of taxes;
a. When the Commissioner is prohibited from making the assessment or beginning distrait and levy or a proceeding
in court and for thirty (30) days thereafter
b. When the taxpayer request for the reinvestigation which is granted by the Commissioner
c. When the taxpayer is out of the Philippines
d. When the taxpayer cannot be located in the address given by him in the return.

19. The following are the grounds to cancel a tax liability by the commissioner, except
a. The tax is unjustly or excessively assessed
b. The administration and collection cost involved do not justify the collection of the amount
c. A reasonable doubts as to the validity of the claim against the taxpayer
d. Illegal collection of tax.

20. Which if the following is not a requisite to toll the collection of taxes to be made by the BIR, upon proof of the following to the
Court of tax Appeals
a. It will jeopardize the interest of the taxpayer
b. It will jeopardize the interest of the government
c. Filing of a bond for at least double the amount of the tax assessed
d. The case is not dilatory

21. Occupying the forefront of tax law enforcement is the:

a. Department of Finance
b. Bureau of Internal Revenue
c. Legislative Department
d. Executive Department.

22. The power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in
relation thereto, or other matters arising under the Tax Code or other laws administered by the BIR is vested with
a. The Commissioner of the BIR
b. The Secretary of Finance
c. The Court of Tax Appeals
d. The Regular Courts