A taxpayer�s motion for re-investigation may be acted upon by the BIR within

a. 180 days from the submission of the documents.

b. 180 days from the filing of the protest.
c. 60 days from the filing of the protest. WRONG
d. 60 days from the receipt of the final assessment notice.

Seized properties shall not be sold at public auction

a. if the taxpayer settled the assessment. CORRECT
b. if the taxpayer did not pay the assessment. WRONG
c. if the amount of tax does not exceed P100. WRONG
d. after the property has been advertised for at least 30 days.

Which of the following is not an administrative remedy available to a taxpayer in

connection with collection of taxes?
a. Filing of criminal complaint against erring BIR officials or employees CORRECT
b. Filing of petition for reconsideration or reinvestigation WRONG
c. Filing of claim for tax refund or credit
d. Entering into a compromise WRONG

The failure of the taxpayer to make the installment payment of the tax shall result
in
a. forfeiture of the tax balance.
b. the criminal prosecution of the taxpayer.

Which of the following is incorrect?

Select one:
a. The prescription period of three (3) years commences to run after the date the
return is due or filed, whichever is later.
b. If the return is filed after the last day or due date, the period shall be
counted from the day the return is filed.
c. If the return was amended substantially, the period starts from the due date of
the return.
d. If the return is filed before the last day of filing, the prescription period
begins to run only from such last day.
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The correct answer is: If the return was amended substantially, the period starts
from the due date of the return.
Question 2
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Which of the following prescriptive period for the BIR to conduct a tax audit is
correct?

Select one:
a. Ten years when not return is filed
b. Ten years when a return filed is false or fraudulent
c. Three years from actual filing of return or form the deadline for filing if the
return filed is not fraudulent
d. All of the above
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The correct answer is: All of the above
Question 3
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The documents required for a request for re-investigation must be submitted within

Select one:
a. 60 days from the submission of the protest.
b. 30 days from the receipt of the pre-assessment notice.
c. 30 days from the issuance of the FAN/FLD.
d. 60 days from the receipt of the FAN/FLD.
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The correct answer is: 60 days from the submission of the protest.
Question 4
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The letter of authority will not be issued by a

Select one:
a. Revenue District Officer
b. Regional Director
c. Assistant Commissioner � LTS
d. Commissioner of Internal Revenue
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The correct answer is: Revenue District Officer
Question 5
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Tax assessments can be collected

Within five years from assessment

Within ten years in case there is no assessment and in case of false or fraudulent
returns with intent to evade the tax liabilities
Select one:
a. II only
b. Neither I nor II
c. I only
d. Both I and II
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The correct answer is: Both I and II
Question 6
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Documents are required to support a
I. Request for reconsideration
II. Request for re-investigation

Select one:
a. II only
b. Both I and II
c. I only
d. Neither I nor II
Feedback
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The correct answer is: II only
Question 7
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Preliminary assessment notice is not required in the following, except

Select one:
a. When the finding for any deficiency tax is the result of mathematical error in
the computation of the tax appearing on the face of the return filed by the
taxpayer.
b. When a discrepancy has been determined between the tax withheld and the amount
actually remitted by the withholding agent.
c. When a taxpayer who opted to claim a refund or tax credit of excess creditable
withholding tax for a taxable period was determined to have carried over and
automatically applied the same amount claimed against the estimated tax liabilities
for the taxable quarter or quarters of the succeeding taxable year.
d. None of the above
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The correct answer is: None of the above
Question 8
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It is an official document empowering a revenue officer to examine a taxpayer�s
books of accounts and records to determine the correct tax liabilities

Select one:
a. Letter of authority
b. Tax audit
c. Tax assessment
d. Preliminary assessment notice
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The correct answer is: Letter of authority
Question 9
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It is the official action of an officer authorized by law to ascertain the correct
amount of tax due from a taxpayer

Select one:
a. Tax assessment
b. Tax audit
c. Preliminary assessment notice
d. Letter of authority
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The correct answer is: Tax assessment
Question 10
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As a rule, taxpayers shall be subject to audit

Select one:
a. annually.
b. for as long as the examiner deems it fit considering the taxpayer�s audit risks.
c. only once a year.
d. at least once a year.
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The correct answer is: only once a year.
Question 11
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Statement 1: A tax return, statement or declaration filed by a taxpayer may be
modified, changed or amended within three (3) years from the date of filing.

Statement 2: When a letter of authority or investigation of tax return, statement

or declaration has been actually served upon the taxpayer, amendment of such return
shall no longer be allowed.

Which is correct?

Select one:
a. Both statements are incorrect
b. Statement 1 only
c. Statement 2 only
d. Both statements are correct
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The correct answer is: Both statements are correct
Question 12
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A subpoena for the production of documents is a

Select one:
a. Subpoena ad testificandum
b. Subpoena duces testificandum
c. Subpoena duces tecum
d. Subpoena tecum
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The correct answer is: Subpoena duces tecum
Question 13
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The issuance of an FAN/FLD after protest has been made by the taxpayer is

Select one:
a. called jeopardy assessment.
b. an illegal procedure which deprives the taxpayer of due process.
c. intended to expedite the collection of taxes.
d. a denial of protest.
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The correct answer is: a denial of protest.
Question 14
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Exceptionally, an FAN/FLD may be issued outright except when

Select one:
a. The deficiency tax pertains to excise tax on excisable articles.
b. The deficiency tax pertains to unremitted withholding taxes.
c. The taxpayer interposed valid defenses.
d. The deficiency tax results from mathematical errors.
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The correct answer is: The taxpayer interposed valid defenses.
Question 15
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Which is not required to be included in the reply to the Preliminary Assessment
Notice?

Select one:
a. Explanation for matters questioned by the BIR examiner.
b. Prayer for full or partial cancellation of the PAN.
c. Factual and legal bases supporting the taxpayer�s position.
d. A request for BIR response within 15 days.
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The correct answer is: A request for BIR response within 15 days.
Question 16
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Upon receipt of a preliminary assessment notice, the taxpayer must respond within

Select one:
a. 30 days.
b. 10 days.
c. 60 days.
d. 15 days.
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The correct answer is: 15 days.
Question 17
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Which of the following is not an administrative remedy available to a taxpayer in
connection with collection of taxes?
Select one:
a. Filing of petition for reconsideration or reinvestigation
b. Filing of claim for tax refund or credit
c. Filing of criminal complaint against erring BIR officials or employees
d. Entering into a compromise
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Your answer is correct.
The correct answer is: Filing of criminal complaint against erring BIR officials or
employees
Question 18
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Which of the following are taxpayer protests?
I. Request for reconsideration
II. Request for settlement by compromise
III. Request for re-investigation

Select one:
a. I and III only
b. I, II and III
c. I and II only
d. II and III only
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The correct answer is: I and III only
Question 19
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Donor�s Tax return for a donation made on January 15, 2010 was filed on January 31,
2010. However, it was discovered on March 31, 2010 that the return filed was
fraudulent. The last day for the BIR to assess is on

Select one:
a. February 14, 2020
b. February 28, 2020
c. March 31, 2020
d. January 31, 2020
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The correct answer is: March 31, 2020
Question 20
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Which of the following will not be involved during the assessment stage?

Select one:
a. Preliminary Assessment Notice
b. Final Decision on Disputed Assessment
c. Preliminary Collection Letter
d. Final Assessment Notice and Formal Letter of Demand
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The correct answer is: Preliminary Collection Letter
Question 21
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What constitutes a prima facie evidence of a false or fraudulent return?

Select one:
a. a substantial under-declaration of taxable sales, income or receipts as
determined by the BIR CIR.
b. Failure to report sales in an amount exceeding 30% of that declared per tax
return
c. A claim of deduction in an amount exceeding 30% of actual deduction
d. All of the above
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The correct answer is: All of the above
Question 22
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Miguel filed his 2015 income tax return and paid the tax due thereon on April 1,
2016. The last day for the BIR to send an assessment is

Select one:
a. April 15, 2016
b. April 15, 2019
c. April 1, 2019
d. April 15, 2021
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The correct answer is: April 15, 2019
Question 23
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A taxpayer who concedes to a BIR assessment must

Select one:
a. pay the tax.
b. file a petition for review with the CTA.
c. pay the tax and file a claim for refund.
d. file a motion for re-investigation.
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The correct answer is: pay the tax.
Question 24
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The final decision of the CIR may be administratively disputed by the taxpayer
within
30 days from receipt thereof.

Question 25
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A taxpayer�s motion for re-investigation may be acted upon by the BIR within

Select one:
a. 60 days from the filing of the protest.
b. 180 days from the filing of the protest.
c. 180 days from the submission of the documents.
d. 60 days from the receipt of the final assessment notice.
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Your answer is incorrect.
The correct answer is: 180 days from the submission of the documents.
c. the issuance of a new assessment.
d. the entire balance becoming due and demandable immediately. CORRECT

The following remedies are available to the government to collect taxes, except:
a. Entering into compromise of tax cases
b. Enforcement of forfeiture of property
c. Inquiring into bank deposit accounts of taxpayers CORRECT
d. Distraint and levy

Properties of the taxpayer shall be seized in sufficient quantity to cover the

following costs except one. Choose the exception.
a. Service fee of the BIR. CORRECT
b. Selling expenses of the property. WRONG
c. Tax due including penalties and interest.
d. Expenses of the distraint. WRONG

Donor�s Tax return for a donation made on January 15, 2010 was filed on January 31,
2010. The last day for the BIR to assess is on
a. January 31, 2013
b. February 14, 2013
c. February 28, 2013 WRONG
d. January 15, 2013

Statement 1: Levy and distraint may be done simultaneously.

Statement 2: Levy may be done after the distraint of personal property.
Which statement is correct?
Both statements are correct

The seizure of real property is

Levy

Which is not a remedy of the government to enforce collection of unpaid taxes?

a. Abatement of the tax liability of the taxpayer CORRECT
b. Imposition of administrative penalties WRONG
c. Suspension of business operations WRONG
d. Seizure of taxpayer properties

The seizure of personal property is

a. Levy
b. Forfeiture
c. Distraint CORRECT
d. Garnishment

Which is used to validate the legal claims of the government to a taxpayer�s

property?
a. Notice of tax lien CORRECT
b. Final notice
c. Warrant of distraint or levy
d. Notice of seizure

Statement 1: The government may forfeit a property in its favor after the failure
of three auction sales to raise the amount of the unpaid tax.
Statement 2: The taxpayer may redeem the property forfeited by the government
within two years.
Which statement is correct?
a. Statement 1 only
b. Both statements are incorrect CORRECT
c. Statement 2 only
d. Both statements are correct

The seizure of interests such as bank accounts and credits of the taxpayer is
called
a. Distraint
b. Garnishment CORRECT
c. Levy WRONG
d. Forfeiture

The prescriptive period of assessment and collection will not be suspended when the
a. CIR is prohibited from making an assessment.
b. taxpayer's properties cannot be located. WRONG
c. taxpayer is out of the Philippines. WRONG
d. BIR rejects the taxpayer�s request for a reinvestigation. CORRECT

The following remedies are available to the government to collect taxes, except:
a. Distraint and levy
b. Enforcement of forfeiture of property
c. Inquiring into bank deposit accounts of taxpayers
d. Entering into compromise of tax cases WRONG

To freeze bank accounts and interests, the government shall issue

Warrant of garnishment

The remedies of distraint and levy can be used only when the amount of tax
a. do not exceed P100 CORRECT
b. exceeds P1,000 WRONG
c. do not exceed P1,000 WRONG
d. exceeds P100

Constructive distraint is least likely to be made on a property of a taxpayer who

is
a. intending to leave the Philippines. WRONG
b. changing business address with due notice given to the BIR.
c. retiring from a business subject to tax. WRONG
d. intending to remove or conceal his property.

Who shall conduct the distraint of property when the amount of tax do not exceed P1
million?
a. Revenue director
b. Commissioner of Internal Revenue
c. Revenue district officer CORRECT
d. Deputy Commissioner

The distinction between actual distraint and constructive distraint is that

a. Actual distraint may be made on the property of any taxpayer whether delinquent
or not while constructive distraint is made on the property only of a delinquent
taxpayer.
b. In actual distraint, there is taking of possession, while in constructive
distraint, the taxpayer is merely prohibited from disposing of the property.
CORRECT
c. Actual distraint is effected by requiring the taxpayer to sign a receipt of the
property, or by the revenue officer preparing and leaving a list of distrained
property, or by service of a warrant of distraint or garnishment.
d. None of the above.

Which of the following statements is incorrect?

a. Criminal proceedings under the Tax Code is now a mode of collection of Internal
Revenue taxes, fees and charges.
b. If the taxpayer is acquitted, it does not exonerate him for his civil liability
to pay the taxes. WRONG
c. A conviction for tax evasion is not a bar for collection of unpaid taxes. WRONG
d. A tax assessment is necessary to a criminal prosecution for willful attempt to
defeat and evade payment of taxes. CORRECT

The final decision of the CIR may be administratively disputed by the taxpayer
within
a. 15 days from receipt thereof.
b. 30 days from receipt thereof. CORRECT
c. 30 days from issuance thereof.
d. 15 days from issuance thereof.

Anong filed his 2013 income tax return on April 10, 2014. On June 20, 2014, she
filed an amended return which is substantially different from the original return.
The last day for the BIR to give an assessment is on
a. June 20, 2017
b. April 10, 2017
c. April 15, 2017 WRONG
d. June 20, 2019

What constitutes a prima facie evidence of a false or fraudulent return?

a. a substantial under-declaration of taxable sales, income or receipts as
determined by the BIR CIR. WRONG
b. Failure to report sales in an amount exceeding 30% of that declared per tax
return
c. A claim of deduction in an amount exceeding 30% of actual deduction
d. All of the above. CORRECT

Collections must be enforced by the government within

a. 3 years from the date of assessment.
b. 5 years from the date of assessment. CORRECT
c. 10 years from the date of assessment in case of fraud.
d. 10 years from the date of filing of return in case of fraud.

Tax assessments can be collected

I. Within five years from assessment
II. Within ten years in case there is no assessment and in case of false or
fraudulent returns with intent to evade the tax liabilities
a. II only
b. Neither I nor II
c. I only
d. Both I and II CORRECT

Mabini filed his income tax return for taxable year 2013 on May 2, 2014. After an
investigation, it was discovered that the tax paid was deficient. The last day for
the BIR to send an assessment is on
- May 2, 2017

Upon receipt of a preliminary assessment notice, the taxpayer must respond within
- 15 DAYS

The letter of authority will not be issued by a

- Revenue District Officer

The 3 year-prescriptive period will be extended by any of the following instances

except one. Choose the exception.

Select one:
a. Waiver by the taxpayer of the statutes of limitation.
b. Filing by the taxpayer of a fraudulent return.
c. Failure of the taxpayer to file a return.
d. Fortuitous events.
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The correct answer is: Fortuitous events.
Question 2
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The following remedies are available to the government to collect taxes, except:

Select one:
a. Inquiring into bank deposit accounts of taxpayers
b. Enforcement of forfeiture of property
c. Entering into compromise of tax cases
d. Distraint and levy
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The correct answer is: Inquiring into bank deposit accounts of taxpayers
Question 3
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The final decision of the CIR may be administratively disputed by the taxpayer
within

Select one:
a. 15 days from issuance thereof.
b. 30 days from issuance thereof.
c. 15 days from receipt thereof.
d. 30 days from receipt thereof.
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The correct answer is: 30 days from receipt thereof.
Question 4
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Which of the following are taxpayer protests?
I. Request for reconsideration
II. Request for settlement by compromise
III. Request for re-investigation

Select one:
a. I and II only
b. I, II and III
c. II and III only
d. I and III only
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The correct answer is: I and III only
Question 5
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Preliminary assessment notice is not required in the following, except

Select one:
a. When the finding for any deficiency tax is the result of mathematical error in
the computation of the tax appearing on the face of the return filed by the
taxpayer.
b. When a discrepancy has been determined between the tax withheld and the amount
actually remitted by the withholding agent.
c. When a taxpayer who opted to claim a refund or tax credit of excess creditable
withholding tax for a taxable period was determined to have carried over and
automatically applied the same amount claimed against the estimated tax liabilities
for the taxable quarter or quarters of the succeeding taxable year.
d. None of the above
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The correct answer is: None of the above
Question 6
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Which of the following statements regarding the issuance of letter of authority is
incorrect?

If the taxpayer to be audited is under the jurisdiction of the National Office, the
letter of authority shall be issued by a Regional Director.
If the taxpayer to be audited is under the jurisdiction of the regional offices,
the letter of authority shall be issued by the Commissioner of Internal Revenue.
Select one:
a. Both I and II
b. II only
c. I only
d. Neither I nor II
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The correct answer is: Neither I nor II
Question 7
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Anong filed his 2013 income tax return on April 10, 2014. On June 20, 2014, she
filed an amended return which is substantially different from the original return.
The last day for the BIR to give an assessment is on
Select one:
a. April 15, 2017
b. June 20, 2019
c. June 20, 2017
d. April 10, 2017
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The correct answer is: June 20, 2017
Question 8
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The letter of authority will not be issued by a

Select one:
a. Commissioner of Internal Revenue
b. Regional Director
c. Revenue District Officer
d. Assistant Commissioner � LTS
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The correct answer is: Revenue District Officer
Question 9
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Mabini filed his income tax return for taxable year 2013 on May 2, 2014. After an
investigation, it was discovered that the tax paid was deficient. The last day for
the BIR to send an assessment is on

Select one:
a. April 15, 2017
b. May 2, 2016
c. May 2, 2017
d. April 15, 2016
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The correct answer is: May 2, 2017
Question 10
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The issuance of an FAN/FLD after protest has been made by the taxpayer is

Select one:
a. called jeopardy assessment.
b. an illegal procedure which deprives the taxpayer of due process.
c. intended to expedite the collection of taxes.
d. a denial of protest.
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The correct answer is: a denial of protest.
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Tax assessments can be collected

Within five years from assessment

Within ten years in case there is no assessment and in case of false or fraudulent
returns with intent to evade the tax liabilities
Select one:
a. II only
b. Neither I nor II
c. Both I and II
d. I only
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The correct answer is: Both I and II
Question 12
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It is the written notice given to a taxpayer informing him of the findings of the
BIR officer of the deficiency of his tax declarations.

Select one:
a. Letter of authority
b. Tax audit
c. Tax assessment
d. Preliminary assessment notice
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The correct answer is: Preliminary assessment notice
Question 13
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Which of the following will not be involved during the assessment stage?

Select one:
a. Preliminary Collection Letter
b. Final Decision on Disputed Assessment
c. Preliminary Assessment Notice
d. Final Assessment Notice and Formal Letter of Demand
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The correct answer is: Preliminary Collection Letter
Question 14
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It is the process of examining the books and records of the taxpayer to ascertain
the correctness of the tax declarations of the taxpayer

Select one:
a. Tax audit
b. Preliminary assessment notice
c. Letter of authority
d. Tax assessment
Feedback
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The correct answer is: Tax audit
Question 15
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An assessment made without the benefit of a complete or partial audit is called

Select one:
a. Disputed assessment
b. Illegal assessment
c. Final assessment
d. Jeopardy assessment
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The correct answer is: Jeopardy assessment
Question 16
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A taxpayer�s motion for re-investigation may be acted upon by the BIR within

Select one:
a. 180 days from the filing of the protest.
b. 60 days from the receipt of the final assessment notice.
c. 60 days from the filing of the protest.
d. 180 days from the submission of the documents.
Feedback
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The correct answer is: 180 days from the submission of the documents.
Question 17
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Upon receipt of a preliminary assessment notice, the taxpayer must respond within

Select one:
a. 60 days.
b. 15 days.
c. 10 days.
d. 30 days.
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The correct answer is: 15 days.
Question 18
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Donor�s Tax return for a donation made on January 15, 2010 was filed on January 31,
2010. The last day for the BIR to assess is on

Select one:
a. February 28, 2013
b. February 14, 2013
c. January 15, 2013
d. January 31, 2013
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Your answer is correct.
The correct answer is: February 14, 2013
Question 19
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In the case of late filing of tax return, the prescriptive period for assessment
shall be counted as

Select one:
a. 5 years from the due date of filing the return.
b. 3 years from the payment of the tax.
c. 3 years from the actual date of filing of the return.
d. 5 years from the actual date of filing of the return.
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The correct answer is: 3 years from the actual date of filing of the return.
Question 20
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An examination of a calendar year corporate taxpayer�s records shows that it filed
its final adjustment income tax return on February 14, 2012 for its 2011 income. It
subsequently filed an amended return on March 17, 2012. Up to what date has the BIR
within which to issue a FAN/FLD?

Select one:
a. February 15, 2015
b. March 18, 2022
c. April 15, 2015
d. March 18, 2015
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The correct answer is: April 15, 2015
Question 21
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A subpoena for the production of documents is a

Select one:
a. Subpoena tecum
b. Subpoena ad testificandum
c. Subpoena duces testificandum
d. Subpoena duces tecum
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The correct answer is: Subpoena duces tecum
Question 22
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What constitutes a prima facie evidence of a false or fraudulent return?

Select one:
a. a substantial under-declaration of taxable sales, income or receipts as
determined by the BIR CIR.
b. Failure to report sales in an amount exceeding 30% of that declared per tax
return
c. A claim of deduction in an amount exceeding 30% of actual deduction
d. All of the above
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Your answer is correct.
The correct answer is: All of the above
Question 23
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In general, the conduct of the audit investigation of the taxpayer shall not run
over

Select one:
a. one year.
b. 120 days.
c. 60 days.
d. 180 days.
120 days.
Question 24
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A taxpayer receives a final assessment notice on January 5, 2015. He files a motion
for reconsideration with the BIR on January 15, 2015. When is the last day for the
submission of complete documents to support his motion for reconsideration?

Select one:
a. March 16, 2015
b. None of the above
c. January 15, 2017
d. February 4, 2015
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The correct answer is: February 4, 2015
Question 25
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Which is correct regarding the pre-audit of a tax return?

Select one:
a. Pre-audit is part of a regular audit.
b. Pre-audit requires the issuance of an LA.
c. Pre-audit is done to check mathematical computations or ascertain correctness
and validity of deductions claimed by the taxpayer.
d. Pre-audit is a substitute for a regular audit.
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Your answer is correct.
The correct answer is: Pre-audit is done to check mathematical computations or
ascertain correctness and validity of deductions claimed by the taxpayer.

To which of the following is a sale not subject to zero-rated VAT?

Select one:
a. Philippine Amusement and Gaming Corporation
b. Ecozone Entities
c. Government agencies
d. Philippine National Red Cross
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The correct answer is: Government agencies
Question 22
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Which of the following items is not exempt from business tax?

Select one:
a. Sale of ballpen and notebooks
b. Sale of newspapers
c. Sale of magazines
d. Sale of books
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The correct answer is: Sale of ballpen and notebooks
Question 23
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A VAT-registered seller of goods had the following sales and purchases, exclusive
of VAT:

Sales, P800,000
Sales returns and allowances, P20,000
Purchases, P600,000
Purchase returns and allowances, P40,000

The VAT payable is

Select one:
a. P0
b. P21,600
c. P26,400
d. P24,000
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The correct answer is: P26,400
Question 24
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Panday Pira Local Water District has an annual sales of P10 million a year. During
the month, it collected P4,000,00 from sales of water. The percentage tax due is

Select one:
a. P200,000
b. P120,000
c. P80,000
d. P0
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The correct answer is: P80,000
Question 25
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Don Fred imported a harvester from Japan with a total cost of P1,100,000 before
customs duties. The importation is subject to 10% customs duties. What is the VAT
on importation?

Select one:
a. P0
b. P145,200
c. P129,600
d. P158,400
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The correct answer is: P145,200
Question 26
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The consumption tax on domestic sales is
I. VAT
II. Percentage tax

Select one:
a. II only
b. Neither I nor II
c. Both I and II
d. I only
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The correct answer is: Both I and II
Question 27
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Burgos Bakeshop had the following details of operations during the month:

Sales of bread, P4,000,000

Sales of cakes, P500,000
Importation of flour, P1,000,000
Other purchases, inclusive of P240,000 VAT, P2,500,000
Salaries expense, P500,000
Other expenses, exclusive of P120,000 VAT, P1,200,000

What is the VAT payable?

Select one:
a. P60,000
b. P140,000
c. P20,000
d. P180,000
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The correct answer is: P180,000
Question 28
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A VAT-registered person shall pay

Select one:
a. 12% VAT on its export sales
b. 3% percentage tax and VAT
c. 12% VAT on its sales or receipts
d. 12% VAT on its value added
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The correct answer is: 12% VAT on its value added
Question 29
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Which of these entities is subject to zero-rating on the sale of renewable sources
of energy?

Select one:
a. Generation companies
b. Transmission companies
c. Distribution companies
d. All of the above
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The correct answer is: Generation companies
Question 30
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Statement 1: Only VAT taxpayers are generally subject to the output tax.
Statement 2: Non-VAT taxpayers never pay the 12% output tax.
Which statement is correct?

Select one:
a. Statement 2 only
b. Both statements are incorrect
c. Statement 1 only
d. Both statements are correct
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The correct answer is: Statement 1 only

A VAT-registered seller merely indicated an amount of P300,000 on a bill without

separately indicating the VAT thereon.
What is the output VAT?
Select one:
a. P36,000
b. P32,143
c. P40,000
d. P0
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The correct answer is: P32,143
Question 32
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Which is a special VAT threshold?

Select one:
a. P1,919,500
b. P10,000,000
c. P1,000,000
d. P3,000,000
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The correct answer is: P10,000,000
Question 33
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Which is not VAT-exempt?

Select one:
a. Importation of agricultural marine food products
b. Receipts from taxicabs
c. Gross receipts of professional practitioners
d. Gross receipt of hospitals
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The correct answer is: Gross receipts of professional practitioners
Question 34
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An approved application for zero-rating is valid for

Select one:
a. One quarter only
b. 5 years
c. 3 years
d. 2 years
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The correct answer is: One quarter only
Question 35
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Which product is non-taxable with VAT on importation?
Select one:
a. Olive oil
b. Fresh cow�s milk
c. Parmesan cheese
d. Butter
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The correct answer is: Fresh cow�s milk
Question 36
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Which is not subject to zero-rating?

Select one:
a. Sale under the internal export programs of the government
b. Export of automobiles to a local export-oriented enterprise
c. Sale of goods to an international transport operator
d. Sale to the USAID
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The correct answer is: Export of automobiles to a local export-oriented enterprise
Question 37
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A non-VAT realty lessor had the following receipts during a month:

Bed spacers� rooms with P2,000 monthly rental each

P 120,000

Houses for rent with P10,000 monthly rental each

1,000,000

Commercial spaces with P5,000 monthly rental each

900,000

Which is correct?

Select one:
a. The taxpayer shall pay VAT on all receipts.
b. The taxpayer shall pay percentage tax on all receipts.
c. The taxpayer shall pay percentage tax on the commercial spaces.
d. The taxpayer shall pay VAT on the commercial spaces.
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Your answer is correct.
The correct answer is: The taxpayer shall pay percentage tax on the commercial
spaces.
Question 38
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Statement 1: The VAT returns for the first two months of the quarter are prepared
on a monthly basis.
Statement 2: The VAT return on the third month of the quarter reflects the monthly
sales for the same month.
Which is correct?

Select one:
a. Statement 1 only
b. Both statements are incorrect
c. Statement 2 only
d. Both statements are correct
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The correct answer is: Statement 1 only
Question 39
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Which will not pay VAT on its receipts?

Select one:
a. Taxicab operators
b. Bookstores
c. Real property dealers
d. Hospitals
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The correct answer is: Taxicab operators
Question 40
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Which of the following statements is correct?

Select one:
a. The sale of real property held for sale, lease or use in the course of business
is subject to tax.
b. The casual sale of real property used in business is subject to business tax.
c. The sale of real property is vatable only when the seller is a realty dealer.
d. The sale of real property by any person is subject to business tax.
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Your answer is correct.
The correct answer is: The sale of real property held for sale, lease or use in the
course of business is subject to tax.

Magbanua Corporation is a parent corporation with two subsidiaries with the

following sales in the past 12 months:

Magbanua Corporation

P4,000,000

Subsidiary A sales
1,200,000

Subsidiary B sales

1,000,000

Which is not correct?

Select one:
a. Subsidiary A and Subsidiary B shall pay percentage taxes.
b. All companies in the group shall pay VAT.
c. Magbanua Corporation shall pay VAT.
d. Magbanua Corporation shall pay VAT while Subsidiary A and Subsidiary B shall pay
percentage taxes.
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The correct answer is: All companies in the group shall pay VAT.
Question 42
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Which of these is vatable?

Select one:
a. Sea vessels
b. City taxis
c. City buses
d. Provincial buses
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The correct answer is: Sea vessels
Question 43
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Which sale of this agricultural or marine product is exempt from business tax?

Select one:
a. Silk
b. Pearl
c. Mackerel
d. Leather
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The correct answer is: Mackerel
Question 44
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A VAT-registered real property dealer sold the following during a quarter:

House and lot � 2BA, P2 million

House and lot � 2BD, P3 million
House and lot � 2CE, P4 million
Residential lot � 1A, P1 million
Residential lot � 2B, P2 million
What is the total output VAT?

Select one:
a. P720,000
b. P1,320,000
c. P1,080,000
d. P0
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The correct answer is: P1,080,000
Question 45
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A VAT-taxpayer made the following sales during the month:
Domestic sales, P2,100,000
Export sales, P1,000,000

What is the amount subject to business tax?

Select one:
a. P0
b. P2,100,000
c. P3,100,000
d. P1,000,000
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The correct answer is: P3,100,000
Question 46
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A VAT-registered taxpayer made the following sales:

Sales destination

Terms

Payment

China

FOB destination

$10,000

Malaysia

FOB destination

P450,000

Hongkong

FOB shipping point

HKD800,000

Philippines

FOB shipping point

P300,000

The applicable exchange rate to the Peso was $1:P42 and HKD1:P0.50.
What is the total zero-rated sales?

Select one:
a. P820,000
b. P1,570,000
c. P1,270,000
d. P420,000
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Your answer is correct.
China, P420,000 + Hongkong P400,00 = P820,000 total zero-rated sales.
As a rule, export sales must be a foreign consumption (sales to non-resident) and
is paid for in acceptable foreign currency to be considered for zero-rating.

The correct answer is: P820,000

Question 47
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No input VAT is allowed on
I. Export sales
II. Government sales
III. Exempt sales

Select one:
a. III only
b. I, II and III
c. II only
d. I only
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The correct answer is: III only
Question 48
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When domestic products that are removed from their place of production without
payment of the excise tax, the tax shall be paid by the

Select one:
a. last seller.
b. producer of the goods.
c. owner having possession thereof.
d. buyer and seller equally.
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The correct answer is: owner having possession thereof.
Question 49
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Which is not a VAT-exempt poultry?

Select one:
a. Ducks
b. Geese
c. Turkeys
d. Game fowl roosters
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The correct answer is: Game fowl roosters
Question 50
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A VAT-registered television company with annual receipts of P8 million, reported a
P1 million revenue for the month of June 2020. It collected P1.2 million from
various clients including advances and paid P800,000 of expenses, P560,000 of which
was paid to VAT suppliers.

The collections and payments are inclusive of VAT.

What is the VAT Payable?

Select one:
a. P76,800
b. P0
c. P52,800
d. P68,571
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Your answer is correct.
The correct answer is: P68,571