1.

The Supreme Court ruled that taxpayers owe honesty to government just as government owes fairness to taxpayers in the case of (Gen. Prin) a. Commissioner vs. Algue b. B ! "amily Savings Ban# vs. Court of Appeals c. Commissioner vs. To#yo shipping Co. d. hilippine $uaranty Co. !nc. vs. Commissioner.

%. The principle on progressivity in taxation is premised on the following objective& 'rephrase( (Gen. Prin) a. to avoid regressively in taxation b. encourage economic growth c. increased revenue d. reduced social ine)uality.

*. The ruled that while taxes are intended for general benefits+ special benefits to taxpayers are not re)uired is pursuant to (Gen. Prin) a. general welfare test b. purpose test c. benefit,protection theory d. lifeblood

-. The exercise of the power to tax by the government is so awesome+ plenary+ supreme+ comprehensive and unlimited as cited in the case of (Gen. Prin) a. .cCullough vs. .aryland b. anhandle /il Co. vs. .ississippi

c. .oor vs. Alton d. 0eaver vs. Scott

1. The jurisprudence that when the transaction itself is the one that is tax,exempt+ but through error the seller pays the tax and shifts the same to the buyer+ the seller gets the refund+ but must hold it in trust for the buyers was established in the case of (Gen. Prin)

a.

hilippine Acetylene Co. vs. Comm.

b. Commissioner vs. $otano c. .aceda vs. .acaraig d. Collector vs. American 2ubber Co.

3. 0hen the classification for taxation is prompted by a spirit of hospitability or discrimination+ the same is violativeof (Gen. Prin) a. due process of law b. e)ual protection of law c. uniformity of taxation d. public purpose

4. Condonation of taxes due and payable complies with the rule on (Gen. Prin) a. uniformity b. e)ual protection of law c. tax exemption d. tax amnesty

to the exclusion of taxes already collected

5. !f a jeopardy assessment is issued by the B!2+ the recourse of the taxpayers is (Rem) a. to appeal to the Court of Tax Appeals. b. file a motion for reinvestigation. c. as# for abatement of the assessment. d. protest the assessment.

6. A party adversely affected by a resolution of a division of a CTA en banc can file etition for 2eview on Certiorari before the Supreme Court pursuant to (Admin) a. 2ule -1 of the 2ules of Civil rocedure b. 2ule -% of 2C c. 2ule -* of 2C

d. Section 4 of 2.A. 6%5%

17. !n the case of Commissioner of !nternal 2evenue vs. 8nion Shipping Co.+ the final decision which was appealable to the Court of Tax Appeals was (Rem) a. when the warrant of distraint and levy was served on taxpayer. b. when a civil action for collection was filed by the B!2 against the taxpayers. c. when there was inaction on the part of the B!2 as to the protest filed by the taxpayers. d. when the B!2 denied the protest filed by the taxpayers.

11. The lien of the $overnment for unpaid internal revenue taxes arises when (Rem) a. the service of warrant of distraint of personal property was made. b. the tax became due and payable. c. the assessment becomes final and unappealable. d. there is a disputed assessment.

1%. The remission of taxes due and payable to the exclusion of taxes already collected constitute (Gen Prin) a. class legislation b. valid classification c. violative of due process of law d. uniform classification

1*. 0henever exemption are expressly granted by organic or statute law+ they are called (Gen. Prin) a. statutory exemption b. express exemption c. total exemption d. absolute exemption

1-. 9eductions for income tax purposes parta#e the nature of (Gen. Prin) a. fringe benefits

b. tax privilege c. tax exemption d. tax incentives

11. The confidentiality rule of B!2 tax returns does not apply to (Admin) a. when inspection is authori:ed by the Secretary of "inance b. when re)uired by Congress in aid of legislation c. when re)uired by the /mbudsman d. in the case of tax compromise

13. !f a criminal case is filed against a taxpayer for tax evasion+ the pendency of the criminal case (Rem) a. suspends the running of the prescriptive period for collection of tax. b. does not suspend the prescriptive period for collection. c. suspends the prescriptive period for the civil action only. d. merely interrupts the prescriptive period.

14. An estate tax is computed on the basis on the basis of the aggregate value of the properties left by the testator at time of death. /n what category of tax does estate tax fall; (Gen. Prin) a. real property tax b. property tax c. transfer tax d. excise tax

15. 9uring the .arcos regime+ the "iscal !ncentives 2eview Board was established to recommend the restoration of tax exemption previously abolished under presidential decrees and headed by the Secretary of "inance+ said move is (Gen. Prin) a. violative of due process of law.

b.

violative of non,impairment of contract.

c. complies with due process of law. d. unauthori:ed delegation of the power to grant tax exemption.

16. "orfeited property by the Bureau of !nternal 2evenue under Section %%1 of the Tax 2eform Code of 1664 shall not be destroyed until at least (Rem) a. 11 days. b. %7 day. c. *7 days. d. 3 months after sei:ure.

%7. !nternal revenue officers assigned to perform assessment or collection functions shall not remain in the same assignment for more than (Tax Admin) a. two years. b. five years. c. three years. d. four years.

A<S0=2S 1. C %. 9 *. C -. A 1. 9 3. A 4. A 5. C 6. A 17. B 11. A 1%. 9 1*. B 1-. C 11. A 13. B 14. 9 15. C 16. B %7. C

II. TRUE or FALSE

1. Stoc#holders may be held liable for the unpaid taxes of a dissolved corporation if it appears that the corporate assets have passed into their hands.

%. The jurisdiction of the tax court include cases involving the collection of the so,called compromises penalties.

*. The Term > /ther .atters? within the Tax Court@s jurisdiction on cases coming from the B!2 includes )uestion of unfair competition in the use of the simplified boo##eeping records under the Tax Code.

-. .andamus to compel the Commissioner of !nternal revenue to assess will result in judicial encroachment on executive functions.

1. There is no reasonable basis for exempting foreign,sourced income of non,resident citi:en as compared to resident citi:en who have pay the ordinary graduated rates.

3. !t is possible that constructive distraint may be applied even if an actual tax delin)uency on the part of the taxpayers already exist.

4.

ayment of the tax due after apprehension shall constitute a valid defense in any prosecution for violation af ay provision of the Tax Code.

5. An assessment wherein the tax assessor has no power to act at all is an erroneous assessment

6. =stoppel does not apply to deprive the $overnment of its right to raise defenses even if those defenses are being raised only for the first time on appeal.

17. !ndirect duplicate taxation is also #nown as obnoxious taxation

11. The running of the prescriptive period is not interrupted by a re)uest for reconsideration if the re)uest does not advance new grounds not previously allegedA

1%. 0hile the right to appeal a decision of the Commissioner if !nternal 2evenue to the tax court is merely a statutory remedy+ nevertheless the re)uirement that it must be brought within thirty days is jurisdictional.

1*. The e)uali:ation of assessments by a central body is not within the realm of legislative power and may therefore be delegated to administrative body.

1-. !n the >Tolentino =,BAT? case+ it was upheld that the imposition of the BAT on sales and leases of real estate by virtue of contracts entered into to the affectivity of the BAT law violated the non,impairment of contracts rule in the Constitution.

11. A B!2 .emorandum Circular parta#es the nature of regulation within the contemplation of the Tax Code and therefore needs publication in order to be effective. A<S0=2S 1. T28= %. T28= *. "ACS= -. T28= 1. "ACS= 3. T28= 4. "ACS= 5. "ACS= 6. T28= 17. "ACS= 11. T28= 1%. T28= 1*. T28= 1-. "ACS= 11. "ACS=

1. An increase in the value of property is considered (Gen. Prin) a. income b. assessed value c. economic benefit d. unreali:ed increase in capital

%. "or income tax purposes+ an alien is considered a resident or non,resident depending on (Income Tax) a. documents issued by the Bureau of !mmigration. b. having relatives in the hilippines. c. being a student in a hilippines university. d. intention as to the length and nature to stay.

*. A .emorandum of Agreement was entered into between Active Cand 2ealty !nc. 'AC2!( and Active roperties !nc. 'A !( providing for the construction of an office tower at Buendia Avenue across 2eposo Street+ .a#ati to be jointly owned by them on a 37D, -7D basis to be leased out between the two corporations on the basis of their corresponding contribution. The arrangement is (Income Tax) a. an informal partnership b. corporate entity c. tax,exempt joint venture d. taxable joint venture

-. 8nder the <!2C+ the .inimum Corporate !ncome Tax '.C!T( is payable on a (Income Tax) a. monthly basis b. )uarterly basis c. taxable year basis d. semi,annual basis

1. 9ividends remitted to the head office of a resident foreign corporation by a domestic corporation are considered (Income Tax) a. branch profits subject to branch profits remittance tax b. dividends subject to *7D final withholding tax under the Tax Code or a tax treaty c. dividends subject to regular income tax d. tax exempt dividend

3. Compensation for damages for personal injuries represents payment for loss of expected profits is (Income) a. taxable income b. tax,exempt income c. income enjoying preferential tax treatment d. an exclusion

4. 8nder Section %1'B.%(+ dividends received by a non,resident alien not engaged in trade or business in the hilippines are subject to 'Income) a. regular income tax of *%D b. final tax of 17D c. final tax of %1D d. final tax of 11D

5. The law which provides tax exempt retirement pay to )ualified private employees in the absence of any retirement plan in the establishment is a. 2.A. <o. -614 b. .9. <o. %%7

c. 2.A. <o. 43-1 d. 2.A. <o. 5-%-

6.

The senior citi:en@s discount being granted to )ualified to senior citi:ens on their purchase of medicines is treated by the drug store as (income) a. tax credit. b. deductible cost c. input BAT for BAT purposes d. exclusion

17. 8nder the Tax Code+ securities becoming worthless is treated as (income) a. ordinary asset transaction

b. capital asset transaction c. wash sale transaction d. e)uity loss

11. Amounts paid for an agreement not to compete in trade or business where the taxpayer can prove the existence of such an agreement are considered (Income) a. ordinary and necessary business expenses b. cost of goods sold c. disturbance compensation d. capital expenditure

1%. The premium of payment for health andAor hospitali:ation insurance which is the only deduction allowed for compensation earners applies only to families which has a gross annual income of not more than (Income) a. b. c. d. %17+777 %77+777 *77+777 *17+777

1*. 2eal and other properties owned or ac)uired '2/ /A( by a ban# which were ac)uired through foreclosure of properties of delin)uent client,borrowers are considered (Income) a. capital assets b. ordinary assets c. ban#s@ property and e)uipment d. ban#s fixed assets for operation

1-. 9istribution of li)uidating dividends in li)uidation of corporations is (income) a. an ordinary asset transaction b. a capital asset transaction c. sale of business assets

d. exchange of business assets

11. A method developed by the B!2 to examine a taxpayer@s income is such method wherein the e)uivalent of a ration analysis of percentages considered typical of the business under investigation is being used to indicate potential sources of revenue where revenue records do not exist. This method is called (Tax Admin) a. benchmar# method b. ratio analysis method c. industry code method d. percentage method

13. The property+ rights+ and obligation of a person which are not extinguished by his death and also those which have accrued thereto since the opening of the succession is called (Estate Tax) a. estate b. assets and liabilities c. net worth d. liabilities and e)uities

14. The amount of interest on foreign loans contracted on or after August 1+ 1653 is subject to (Income) a. regular income tax b. 11D final withholding tax c. %7D final withholding tax d. 17D final withholding tax

15. The amount of royalties on boo#s as well as other literary wor#s and royalties on musical compositions shall be subject to (Income) a. regular income tax b. tax exempt c. final tax of %7D d. final tax of 17D

16. !f a holder of a long,term deposit or investment certificate preterminates the same and gets the proceeds thereon whereby the remaining maturity thereof is * years to less than - years+ a final be imposed on the entire income at the rate of (Income) a. 1D b. %7D c. 1%D d. 17D

%7. !n case of charitable contribution of property other than money+ the basis of the deduction for income tax purposes is (Income) a. fair mar#et value

b. assessed value c. ac)uisition cost d. boo# value

%1. Capital gains from the sale of shares of stoc# not traded in the stoc# exchange for gains not over 177+777 shall be taxed at (Income) a. 17D b. 1D c. %7D d. 4.1D

%%. The Branch rofits 2emittance Tax of 11D remitted by a branch to its head office is based on the total profits (Income) a. boo#ed in the branch b. profit remaining in the branch c. profit actually remitted by the branch d. profits applied or earmar#ed for remittance for repatriation

%*. The need to gross up the monetary value of the fringe benefit received in computing the fringe benefit tax due thereon is because (rephrase) (Income) a. the tax is an additional benefit to the employee b. to comply with the 0ithholding on 0ages 2egulations c. to consolidate the benefit with the salary d. of the absence of the convenience of the employer rule

%-. E C Corporation owns 177D of FTGC Corporation. FTGC Corporation in turn owns Heta Corporation. Heta Corporation has </CC/. Heta Corporation is merged into FTGC Corporation. The </CC/ of Heta Corporation should be (Income) a. retained and transferred FTGC Corporation. b. considered forfeited due to the merger . c. utili:ed by Heta Corporation. d. allowed to transfer if there is a B!2 ruling on the merger

%1. 0hen a corporation is subject to the .inimum Corporate !ncome Tax '.C!T( in any taxabe year during the three,year period for </CC/ utili:ation+ the running of the three, year period for the </CC/ expiry is (Income) a. interrupted b. suspended c. not interrupted d. extended

%3. A "ilipino citi:en who wor#s in Brunei from .onday to "riday and spends his wee#ends and a 3,wee# vacation leave in the hilippines is considered a (Income) a. resident "ilipino citi:en b. "ilipino /verseas Contract 0or#er c. non,resident "ilipino citi:en d. "ilipino tourist

%4. A system where the tax treatment views indifferently the tax base and generally treats in common all categories of taxable income of the taxpayer is called (Gen Prin)

a. unitary tax treatment b. global treatment c. absolute income taxation system d. modified income tax system

%5. Cash pri:es won by local playersAparticipants in golf tournaments are considered (Income) a. business income b. regular income c. passive income d. compensation income

%6. !ncome derived by the taxpayer from the distribution of the licensed computer systems to hilippine ban#s and the performance of support service is considered (Income) a. passive income b. ordinary business income c. royalty income d. Batable income

*7. A non,resident owner of vessel or lessor on their gross rentals+ lease or charter fees from leases or charterers to "ilipino citi:ens as approved by the .aritime !ndustry Authority is subject to a tax of (income) a. 4 ID

b. - ID c. % ID d. *1A%D

Answers 1. 9 %. 9

*. C -. C

1. The official action of an examiner of the Bureau of Internal Revenue in determining the correctness of the tax due from a taxpayer is referred to as: (Tax Admin) a. Tax Examination b. Tax Audit c. Tax Assessment d. Tax apping !. "hen a taxpayer ta#es the initiative of preparing and filing his tax return $ith the Bureau of Internal Revenue% the same is referred to as: (Tax Admin) a. Tax compliance b. Tax initiative c. Internal assessment d. &elf assessment '. If after a tax investigation% the BIR examiner found out that the tax paid by the taxpayer upon filing his tax return is short of $hat should have been paid under the la$% the tax payer is liable for: (Tax Admin) a. Tax avoidance b. Tax evasion c. (eficiency assessment d. (elin)uency assessment *. "hen the BIR examiner issued an assessment $hich $as not bac#ed up by the full audit and only for the purpose of beating the prescriptive period% the assessment is called: (Tax Admin) a. +oid assessment b. Illegal assessment c. Erroneous assessment d. ,eopardy assessment -. "hen a tax assessment issued by the Bureau of Internal Revenue is administratively protested $ithin thirty .'/0 days from the receipt of the assessment% the assessment is called: (Tax Admin) a. Administrative assessment b. 1reliminary assessment c. (isputed assessment d. 2inal assessment 3. The rule of 45o Estoppel Against the 6overnment4 means that: (Tax Admin) a. the government is al$ays presumed correct in performing its tax assessment functions7

b. the taxpayer failed to rebut the tax findings of the government uncovered during tax examination c. the government is not liable for the neglect of its agents and officers d. the government cannot be hampered in doing its tax collection duties. 8. The po$er of the commissioner of Internal Revenue to obtain information from third parties in determining the tax liability of a taxpayer covers information coming from: (Tax Admin) a. 9ther government offices b. Informers c. Tax returns filed by the taxpayer d. All persons both government and private :. A material factor in resolving )uestions of prescription in the assessment of taxes is: (Tax Admin) a. ;omplete submission of all the attachments to the tax returns7 b. 2iling of the tax return in the right venue c. <aving the tax return stamped received by the BIR authori=ed receiving officer d. The date of the filing of the tax return. >. An income tax return for taxable year !//> $as filed on ,anuary 1-% !/1/. prescriptive period for assessment is: (Tax Admin) a. ,anuary 1-% !/1' b. (ecember '1% !/1! c. April !-% !/1' d. April 1-% !/1The

1/. 2orfeiture of property of a delin)uent taxpayer is done by the Bureau of Internal Revenue $hen: (Tax Admin) a. Taxpayer did not file a protest against the tax assessment b. Taxpayer does not attend an informal conference arranged by the BIR c. Taxpayer retires from business or about to leave the 1hilippines d. In a public auction of the property of a delin)uent taxpayer% no bidders bid for the property 11. A tax evasion case discovered by the BIR examiner should be filed by the latter $ith: (Tax Admin) a. 2iscal?s 9ffice b. ;ourt of Tax Appeals c. (epartment of ,ustice d. 9ffice of the BIR ;ommissioner 1!. If a tax or any portion thereof is un@ustly assessed% the recourse of the taxpayer is: (Rem) a. To initiate an offer of compromise of the tax $ith the ;ommissioner of Internal Revenue7 b. The file a case against the BIR examiner in the 9mbudsman

c. To file a damage suit in the ordinary courts d. To re)uest the ;ommissioner of Internal Revenue to abate the tax liability 1'. A compromise for the payment of an Internal Revenue tax is: (Tax Admin) a. A unilateral act of the ;ommissioner of Internal Revenue b. An exclusive right of the taxpayer c. A mutual agreement bet$een the ;ommissioner and the taxpayer d. A right mandated by the Tax ;ode 1*. The minimum rate for the compromise settlement of a tax liability $here the taxpayer is financially incapable is: (Tax Admin) a. 1/A b. */A c. !-A d. -A 1-. The prescriptive period for the collection of a previously assessed Internal Revenue tax is: (Tax Admin) a. 2ive .-0 years fallo$ing the assessment of the tax b. Three .'0 years follo$ing the filing of the tax return c. 2ive .-0 years follo$ing the filing of the tax return d. Ten .1/0 years follo$ing the assessment of the tax 13. A re)uest for reinvestigation by the taxpayer $hich is granted by the ;ommissioner has the follo$ing effect: (Tax Admin) a. &uspends the prescriptive period for assessment b. 1uts an end to an assessment c. 1rescriptive period for the assessment is not affected and continues to run d. Renders the assessment final executor 18. The prescriptive period for the filing of a claim for refund or tax credit of erroneously paid internal revenue tax is: (Tax Admin) a. T$o .!0 years from date of payment% regardless of any supervening event b. &ix .30 years from date of payment c. T$o .!0 years from date of payment but if there is a supervising event% t$o years from the date of the supervising event. d. Three .'0 years from the date of payment 1:. The broad spectrum of taxation includes the rule that the collection of taxes could not be stopped by the courts pursuant to the follo$ing rule: (Tax Admin) a. Bifeblood Theory in Taxation b. Tax exemption policy c. 5oCIn@unction rule d. Theory of 5ecessity

1>. 9ne of the canons of taxation is fiscal ade)uacy. A violation of this canon $ould fall under the follo$ing: (Gen Prin) a. The constitutional provision that all revenue bills should originate from the <ouse of &enate may concur $ith amendments b. (ereliction of duties on the part of the Bureau of Internal Revenue c. 5o breach of any constitutional provision d. The Bateral Attrition Ba$ !/. "henever a violation of the Tax Reform ;ode of 1>>8 is committed by a taxpayer% an internal revenue officer can ma#e an arrest. The legal basis for this is the: (Tax Admin) a. Revised 1enal ;ode b. Tax ;ode c. Rules of ;ourt d. 9mbudsman Act !1. A property may be placed under constructive distraint by the Bureau of Internal Revenue $hen: (Tax Admin) a. The taxpayer becomes delin)uent in the payment of internal revenue tax b. The taxpayer fails to file a protest against tax assessment c. The taxpayer may not yet be delin)uent d. The taxpayer fails to appeal to the ;ourt of Tax Appeals !!. A taxpayer overpaid his income tax $hen he filed his income tax return on April 1-% !//8. Reali=ing the overpayment% he filed a claim for refund $ith the BIR on ,une 1-% !//8. <e received the reply of the BIR denying his claim on ay '% !//>. "hat should he do $ith the adverse decision of the BIRD (Remedies) a. 2ile a otion for Reconsideration $ith the BIR b. Elevate the case to the ;ourt of Tax Appeals $ithin '/ days from ay '% !//> given the '/ days deadline to appeal adverse decision pursuant to RA >!:! c. <e has lost his right to appeal d. 2ile an auction $ith the ordinary courts for undue payment (solutio indebiti) !'. Before a case for tax evasion against a client under the Tax ;ode is filed% the same must be approved by the: (Tax Admin) a. &olicitor 6eneral?s 9ffice b. &ecretary of 2inance c. ;ommissioner of Internal Revenue d. (epartment of ,ustice !*. In case of doubt in a tax exemption la$% $hich of the follo$ing rules shall governD (Gen Prin) a. The doubt must be resolved in favor of the taxpayer since a tax is a deprivation of hardCearned money of the taxpayer. b. 5o person shall be deprived of due process of la$ $hich is guaranteed by the ;onstitution. c. The doubt must be resolved in favor of the government.

d. The legislative intention must be determined first. !-. A taxpayer filed his income tax return on April 1-% !//:. <e received a 5otice of Assessment on ,anuary 1-% !//> and shortly thereafter the BIR examiner started his investigation of the return. Epon Receipt of the preliminary report of the result of the tax examination% taxpayer re)uested for investigation $hich $as granted by the BIR on ,une 1-% !//> and reinvestigation $as finished on (ecember 1-% !//>. The final assessment $as only issued to the taxpayer on ,une 1-% !/11 for $hich the taxpayer argued that assessment has prescribed since under the ' yearsCprescriptive rule under &ection !/' of the Tax ;ode% the final assessment should have been issue on or before April 1-% !/11. The issue is: (Tax Admin) a. The assessment has already prescribed under section !/' of the Tax ;ode b. The assessment has prescribed because the BIR did not ta#e the initiative of re)uesting the taxpayer to file the "aiver of the 1rescriptive 1eriod c. The assessment has not yet prescribed because it falls $ithin the grounds under section !!' of the Tax ;ode d. The assessment has prescribed because the BIR did not offer to compromise the assessment $ith the taxpayer. A5&"ER& 1. ; !. ( '. ; *. ( -. ; 3. ; 8. ( :. A >. A 1/. ( 11. ; 1!. ( 1'. ; 1*. A 1-. A 13. A 18. A 1:. ; 1>. B !/. B !1. ; !!. ; !'. ; !*. ; !-. ;

1. The authority of the ;ommissioner of Internal Revenue to prescribed real property values is intended for the follo$ing purpose: (tax Admin) a. Assure collection of the correct real property taxes due from property o$ners b. To have uniform and standard valuation of real properties and assure transparency in business transactions c. 1revent undervaluation of real property values for tax purposes d. Avoid arbitrariness in the valuation of real properties. !. The termination of a taxable period of a taxpayer is intended for the follo$ing purpose: (tax Admin) a. To address the internal accounting needs of the BIR

b. The taxpayer is retiring from business or intending to leave the 1hilippines c. The taxpayer has re)uested the BIR for such move d. The business of the taxpayer necessitates such move '. The po$ers vested on the ;ommissioner may be delegated to the follo$ing: (tax Admin) a. (ivision chief or higher b. Tas# 2orce of the ;ommissioner c. ;ommissioner?s confidential advisers d. External consultants *. "henever the ;ommissioner @oins inventoryFta#ing and surveillance @ob of taxpayers under &ection 3 . c 0 of the Tax ;ode% he $ould need authority from: (tax Admin) a. 9rdinary courts b. ;ourt of Tax Appeals c. &ecretary of 2inance d. 5o need to get any authority -. "hen a $arrant of 6arnishment is issued by the ;ommissioner of internal Revenue to garnish a taxpayer?s money in the custody of a ban#% the same is a violative of: (tax Admin) a. Republic Act 1*/- . &ecrecy of Ban# (eposits0 b. 6eneral Ban#ing Ba$s of !/// c. ;onfidentiality of Ban#ing Transactions d. 5ot violative of the la$s cited above 3. Ba$s and regulations issued by the government concerning collection of taxes are re)uired to be published in ne$spapers of general circulation. 2ailure to do so violates: (Gen Prin) a. Inherent limitations on taxations b. ;anons of taxations c. 1rivate rights of taxpayer d. Theoretical @ustice 8. It has been said that in taxation% there is symbiotic relationship bet$een the taxpayer and the government. The doctrine falls under: (Gen Prin) a. Basis of Taxation b. Aspects of Taxation c. The ;ourt of Tax Appeals d. The Evaluation Board :. In case of a compromise of a civil liability for taxes $here the basic tax exceeds 9ne illion 1esos or $here the settlement offered is less than the minimum rate of */A the compromise shall be approved by the : (tax Admin) a. &ecretary of 2inance b. ;ommissioner of Internal Revenue c. ;ourt of Tax Appeals

d. Evaluation Board >. A refund chec# or $arrant issued by the BIR in accordance $ith &ection !/* of the Tax ;ode are claimable $ithin the period of: (tax Admin) a. T$o years b. Ten years c. 2ive years d. Three years 1/. "hen the po$er of the ;ommissioner to compromise a tax case is delegated under &ection 8 of the Tax ;ode on cases involving basic deficiency tax of 1-//%/// or less% the same may be delegated to the: (tax Admin) a. Regional (irector b. Assistant Regional (irector c. Revenue (istrict 9fficer d. Regional Evaluation board 11. The &ecrecy of Ban# (eposits under Republic Act 5o. 1*/- is automatically $aived by operation of la$ examination of the follo$ing taxes: (tax Admin) a. Income Tax b. +alue Added Tax c. Estate Tax d. (onor?s Tax 1!. The 5et "orth ethod of investigation being utili=ed by the BIR in assessing taxpayers is based on the follo$ing: (Tax Admin) a. "hen a person is benefit economically in life% his net $orth $ill increase b. "hen the capital account of a person increases% there is presumed income c. All persons $ho have assets are presumed to have income d. All persons $ho have source of income should have taxable income 1'. 9ne of the canons of taxation is theoretical @ustice. A violation of this canon is based on: (Gen Prin) a. The rule of uniformity and e)ual protection of la$ in taxation. b. Theory of necessity c. Basis of taxation $hich is reciprocity d. 6uarantee of due process of la$ 1*. Ac)uittal in a criminal case for tax evasion does not carry $ith it the exoneration from civil obligation to pay tax is in the Tax ;ode (tax Admin) a. A criminal case is governed by the Revised 1enal code $hile the civil obligation to pay tax in the Tax ;ode b. A different )uantum of evidence is re)uired in a criminal case visCGCvis a civil obligation to pay tax c. A criminal violation is sanctioned by fines and imprisonment $hereas the civil obligation is exposed only to the incremental penalties for deficiency and delin)uency

d. There are t$o separate and distinct offenses involved. 1-. "hich of the follo$ing situations do not re)uire a preCassessment under the Tax ;odeD (tax Admin) a. "hen the taxpayer being examined re)uest for the reinvestigation of his records b. "hen the taxpayer executes a $aiver of the prescriptive period c. "hen the excise tax due on excisable articles has not been paid d. "hen the taxpayer retires from business or leave the 1hilippines. 13. "hen the issue in controversy bet$een the taxpayers and the ;ommissioner does not involve a difficult )uestion of la$ or doubtful validity% the options opened to the ;ommissioner are as follo$s: (tax Admin) a. Accept the compromise offer from the taxpayer $ho invo#es ;ommissioner?s right under &ection !/* of the Tax ;ode b. ;ommissioner should pursue collection of the tax c. &uggest that the taxpayer appeal the case to the ;ourt of Tax Appeals d. &uggest that taxpayer hire a tax la$yer to assist him 18. An estate tax return $as filed by the administrator of an estate on ,une 1% !//3. The estate tax return $as examined by the BIR and after underta#ing all the procedural steps for tax examination% a final assessment $as issued on August -% !/1/. It $as discovered later by the BIR that the estate tax return $hich filed $as incomplete since a big real property of the testator $as not reported in the estate tax return. The taxpayer argued that since the final assessment $as only issued on August -% !/1/% the assessment is already prescribed being issued beyond the ' years period for tax examination. ;hoose from the follo$ing the applicable @urisprudence in the case: (tax Admin) a. The assessment had already prescribed because the assessment $as only received on August -% !/1/ $hich beyond the prescriptive period of ' years7 b. The assessment had already prescribed in as much as there $as nothing done by the tax payer to suspend the prescriptive period li#e the filing of a otion for Reinvestigation c. The assessment had not yet prescribed because the return being incomplete the ' years prescriptive period does not apply d. The assessment had already prescribed because the BIR did not re)uest the taxpayer to execute a "aiver of 1rescriptive period 1:. A taxpayer filed his income tax return on April 1-% !//3. &ometime arch 1. !//8% he discovered that he omitted a big income $hich should have been reported in the return filed on April 1-% !//3. <ence% on arch !% !//8% he filed an amendment to his income tax return. The perspective period for assessment of the tax return shall expire on: (tax Admin) a. April 1-% !//> b. arch !% !/1/ c. arch 1% !/1/ d. April 1-% !/13

1>. The 4presumption of correctnessH being en@oyed by the government in case of tax assessment cases means: (tax Admin) a. The government is not stopped from the mista#es of its agents b. This is in conformity $ith the supremacy of the government in the collection of taxes c. The taxpayer has the burden of proof in arguing his case and prove that he is correct d. This is in line $ith the lifeblood theory in taxation !/. The !-A I -/A surcharge being imposed on a deficiency or delin)uency assessment initiated by the BIR is based on the follo$ing rationale: (tax Admin) a. It is a $ay of compensating the government for lost revenue. b. It parta#es the nature of li)uidated damages $hich the government suffered c. It is a form of exemplary damages to deter taxpayer from violating the Tax ;ode d. It is another form of raising revenue for the government !1. In tax evasion cases% it is a rule that a precise determination of civil liability for tax is not a condition precedent for the filing of a criminal case. The rationale for this is: (tax Admin) a. The civil and criminal liabilities are separate and distinct liabilities b. The civil liability is given preference over the criminal liability due to the lifeblood theory c. The )uantum of evidence re)uired in the criminal case is not the same as the one for the civil case d. It ta#es time to determine the civil liability for tax of a taxpayer. !!. The &tatute of Bimitations in taxation .prescriptive rules0 are being observed because of the follo$ing rationale: (tax Admin) a. To align it $ith others la$s $here there are also rues on prescription b. The tax la$s of the Enited &tates from $hich the 1hilippine Tax ;ode $as patterned have rules governing prescription c. To ma#e the government vigilant in complying $ith their duties of tax examination and to give peace of mind to taxpayers d. any of the tax la$s of other countries in $orld have rules on prescription !'. Ender $hat condition may the $arrant of distrant and levy being issued by the BIR to enforce collection of taxes can only be initiated by the BIR under $ !*. Epon examination of an income tax return by a BIR examiner% the taxpayer re)uested for information on the items $hich had been disallo$ed by the BIR examiner $hich $as granted by the latter. The effect of giving due course to taxpayer?s re)uest is: (tax Admin) a. to suspend the running of the prescriptive period b. the prescriptive period shall continue to run c. the assessment $ill be suspended d. there is no effect on the prescriptive period

!-. 9ne of the basic principles of a sound tax system is administrative convenience. If this is not complied $ith% the follo$ing rule is violated: (gen Prin) a. (octrine of Exhaustion of Administrative Remedies b. (ue process of la$ c. 5o violation committed d. E)ual protection la$