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    Midterm Exam - Taxation

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    GANNLAUREN SIMANGAN
    1. Compromise penalties are not allowed for failure to keep proper books and records or have audits done. A minimum payment of 30% of basic tax is required for compromise due to financial incapacity, and 20% for other reasons. 2. Administrative remedies like reconsideration or refund claims do not include tax compromises. 3. Assessments become final if not protested within 90 days, and supporting documents must be filed within the same 90 day period. Appeals can be made to CTA if BIR does not act on the protest within 90 days. 4. In general, the BIR has 3 years after a return is filed to make assessments.

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    Midterm Exam - Taxation

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    GANNLAUREN SIMANGAN
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    1. Compromise penalties are not allowed for failure to keep proper books and records or have audits done. A minimum payment of 30% of basic tax is required for compromise due to financial incapacity, and 20% for other reasons. 2. Administrative remedies like reconsideration or refund claims do not include tax compromises. 3. Assessments become final if not protested within 90 days, and supporting documents must be filed within the same 90 day period. Appeals can be made to CTA if BIR does not act on the protest within 90 days. 4. In general, the BIR has 3 years after a return is filed to make assessments.

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    Tax remedies

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    Midterm Exam -Taxation

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    1. Compromise penalties are not allowed for failure to keep proper books and records or have audits done. A minimum payment of 30% of basic tax is required for compromise due to financial incapacity, and 20% for other reasons. 2. Administrative remedies like reconsideration or refund claims do not include tax compromises. 3. Assessments become final if not protested within 90 days, and supporting documents must be filed within the same 90 day period. Appeals can be made to CTA if BIR does not act on the protest within 90 days. 4. In general, the BIR has 3 years after a return is filed to make assessments.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    192 views5 pages

    Midterm Exam - Taxation

    Uploaded by

    GANNLAUREN SIMANGAN
    1. Compromise penalties are not allowed for failure to keep proper books and records or have audits done. A minimum payment of 30% of basic tax is required for compromise due to financial incapacity, and 20% for other reasons. 2. Administrative remedies like reconsideration or refund claims do not include tax compromises. 3. Assessments become final if not protested within 90 days, and supporting documents must be filed within the same 90 day period. Appeals can be made to CTA if BIR does not act on the protest within 90 days. 4. In general, the BIR has 3 years after a return is filed to make assessments.

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    Some key takeaways from the passages include the procedures for filing tax returns, assessments, protests and appeals. It also discusses topics like compromise penalties, prescriptive periods and administrative remedies.

    Some administrative remedies available to taxpayers include filing a petition for reconsideration or reinvestigation, filing a claim for tax refund or credit, and entering into a compromise.

    A protest must be filed within 30 days from receipt of the assessment. An appeal can be made to CTA if BIR does not act on the protest within 180 days from submission of supporting documents.

    1.

    Compromise penalties are not allowed for:


    a. failure to preserve or keep books 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 books of accounts audited and have financial statements
    attached to income tax return certified by an
    independent CPA
    d. keeping two set of books of account or records

    2. This is not an administrative remedy available to a taxpayer in connection with


    collection of taxes
    a. filling a petition for reconsideration or reinvestigation
    b. filling a claim for tax refund or credit
    c. entering into a compromise
    d. filing a criminal complaint against erring BIR officials or employees

    3. 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

    4. Using the preceding no., with regard to compromise 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

    5. 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. 180 days
    6. 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. 180 days

    7. 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

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

    9. 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

    10. In case of an assessment of a tax


    a. the assessment should made within 3 years from the date of filing of the
    return
    b. the assessment should 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

    11. Date assessment was received - March 8, 2007


    Date petition for reconsideration was filed with the BIR - March 18, 2007
    Date filing of documents to support the petition – May 8, 2007
    Date decision of denial of the petition was received – September 28, 2007

    The last day to appeal to the CTA is


    a. April 15, 2008
    b. November 8, 2007
    c. December 8, 2007
    d. October 28, 2007

    12. A car dealer could not pay his taxes on sales. The dealer delivered several units
    of the car to the Bureau of Internal Revenue in payment of the taxes. Which of the
    following statements is correct?
    a. there is a valid payment of the tax
    b. there is in effect a collection of the tax by distant
    c. there is a valid forfeiture of property
    d. this is not valid procedure for collection of the tax

    13. Which of the following is correct


    a. a protest should be filed the taxpayer, otherwise the assessment becomes
    final and can no longer be questioned in court
    b. a protest may be filed by the taxpayer anytime 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

    14. CDE corporation filed its income tax return for the calendar year 2003 on April
    10, 2004. The return was not false or fraudulent, the last day for the BIR to collect
    if without prior assessment is
    a. April 10, 2007
    b. April 15, 2007
    c. April 10, 2009
    d. April 15, 2009

    15. Using the preceding number, if assessment was made on April 10, 2007, the
    last day to collect is
    a. April 10, 2010
    b. April 15, 2010
    c. April 10, 2012
    d. April 15, 2012
    16. A suit questioning the validity of a tax statute or law is:
    a. taxpayer’s suit
    b. derivative suit
    c. class suit
    d. representative suit

    17. Statement 1 – an individual may employ either calendar year or fiscal year as
    basis for filing its annual, income tax return
    Statement 2 – the return of any individual; shall be filed on or before the 15 th day
    of April of each year covering income for the preceding year.
    a. true; false
    b. true; true
    c. false; true
    d. false; false

    18. The authorities of the Commissioner include the following except:


    a. Compromise the payment of any internal revenue tax
    b. Abate a tax liability
    c. Credit or refund tax that had been erroneously received
    d. Inquire into bank deposit

    19. What are the means employed in the assessment of taxes, Except?
    a. examination of tax return (tax audit)
    b. inventory taking surveillance and use of presumptions gross sales or
    receipts
    c. prescription of real property values
    d. examination of bank deposits
    e. requiring of additional documentary evidences

    FALSE 20. Assessment of taxpayers with unpaid or deficiency tax is the first stage
    of a tax audit.

    TRUE 21. Tax compliance verification drive may also identify taxpayers to be
    subjected to regular audit

    TRUE 22. Mathematical computations of income tax due and payment can be done
    on a pre-audit process.

    FALSE 23. Tax audit process starts with the conduct of the audit examination
    FALSE 24. The LA must be served to the taxpayer within 60 days from its date of
    issuance.

    TRUE 25. Revenue officers have up to 120 days counted from the date of receipt
    of the ElA by the taxpayer in which to conduct the audit and to submit his report of
    investigation.

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