1. Which of the following statements on the rules of tax amnesty is/are correct?

I. Like tax exemption, it is never favored nor presumed

II. The government is estopped by mistakes or errors of its agents. Thus, the government may no longer
question the tax liability of a taxpayer when amnesty tax payments are already received.
III. Defense of tax amnesty, like insanity, is a personal defense. It relates to the circumstances of a particular
accused and not the character of the acts charged in the information.

A. I only
B. I and II only
C. I and III only
D. I, II and III

Answer: C

The government is never estopped by mistakes or errors of its agents. Thus, the government may still question the
tax liability of a taxpayer even if amnesty tax payments are already received.

2. In tax amnesty, the taxpayer has immunity from

I. Criminal liability
II. Civil liability
III. Administrative liability

A. I and II only
B. II and III only
C. II only
D. I, II and III

Answer: D

In tax amnesty, the taxpayer has Immunity from all criminal, civil and administrative liabilities arising from non-
payment of taxes.

3. In tax exemption, the taxpayer has immunity from

I. Criminal liability
II. Civil liability
III. Administrative liability

A. I and II only
B. II and III only
C. II only
D. I, II and III

Answer: C

In tax exemption, the taxpayer has immunity from civil liability only arising from non-payment of taxes.

4. Jamili, Inc. filed its annual income tax return on April 17, 2017. Jamili, Inc. is in a calendar year basis for accounting
and tax purposes. When is the last day the BIR can assess the tax liabilities of Jamili, Inc.?

A. April 15, 2020

B. April 17, 2020
C. April 15, 2022
D. April 17, 2022

Answer: C

The statute of limitation for assessment of tax if a return is filed is within three (3) years from the last day prescribed
by law for the filling of the return or if filed after the last day, within three years from date of actual filling.

5. Jamili, Inc. filed its annual income tax return on April 17, 2017. Jamili, Inc. is in a calendar year basis for accounting
and tax purposes. On June 30, 2022, the BIR found out thru its investigation that the return filed by Jamili, Inc. was
fraudulent. When is the last day the BIR can assess the tax liabilities of Jamili, Inc.?

A. April 15, 2027

B. April 17, 2027
C. June 30, 2032
D. April 17, 2020

Answer: C

If no return is filed or the return filed is false or fraudulent, the period to assess is within ten years from discovery of
the omission, fraud or falsity.

6. As a general rule, the period to collect tax imposed under the NIRC is within

A. 2 years from the date of assessment

B. 3 years from the date of assessment
C. 5 years from the date of assessment
 D. 10 years from the date of assessment

Answer: B

The period to collect tax is within three years from date of assessment.

7. For taxes imposed under the Tariff and Customs Code, the prescription period to collect tax is generally after _____
year/s from the date of the final payment of duties, in the absence of fraud or protest.

A. 1 year
B. 2 years
C. 3 years
D. 5 years

Answer: A. 1 year

8. Local Taxes, fees, or charges shall be assessed within _____ year/s from the date they became due. They shall
also be collected either by administrative or judicial action within _____ year/s from date of assessment

A. 1 year; 3 years
B. 2 years; 3 years
C. 3 years; 5 years
D. 5 years; 5 years

Answer: D. 5 years; 5 years

9. Which of the following statements about tax assessments is/are correct?

I. It is discretionary on the part of the Commissioner.

II. The authority of the Commissioner to assess taxes may be delegated, except the power to make final
assessments.

A. Statement I is true; Statement II is false

B. Statement I is false; Statement II is true
C. Both statements are true
D. Both statements are false

Answer: C

10. Who issues the Letter of Authority (LOA)?

A. Revenue District Officer

B. Regional Director
C. Commissioner
D. Revenue Collection Officer

Answer: B

11. I. Income tax returns are confidential.

II. Only the taxpayer himself may authorize the production or inspection of his/her income tax returns.

A. Statement I is true; Statement II is false

B. Statement I is false; Statement II is true
C. Both statements are true
D. Both statements are false

Answer: A

General Rule: income tax returns are confidential.

Exception: inquiry into income tax returns may be authorized-

1. inspection is authorized upon written order of the President of the Philippines;

2. inspection is authorized under Finance Regulations No. 33 of the Secretary of Finance;
3. production of the tax return is material evidence in a criminal case wherein the government is interested in the
result; or
4. production or inspection thereof is authorized by the taxpayer himself.

12. The BIR Commissioner has the authority to inquire into bank deposits

I. In case of a decedent to determine his gross estate

II. A taxpayer who has filed an application to compromise payment of tax liability by reason of financial
incapacity

A. I only
B. II only
C. I and II
D. None of the above

Answer: C
13. Which of the following powers of the Commissioner may not be delegated?

I. Power to Recommend the promulgation of rules and regulations by the Sec. of Finance
II. Power to Issue rulings of first impression or to Reverse, revoke modify any existing rule of the BIR
III. Power to Compromise or abate any tax liability (with exceptions)
IV. Power to Assign or reassign internal revenue officers to establishments where articles subject to excise
tax are kept.

A. I and II only
B. I, II and III only
C. I, II and IV only
D. All of the above.

Answer: D

The regional evaluation board may compromise:

1. assessments issued by regional offices involving deficiency taxes of P500,000 or less and
2. minor criminal violations as may be determined by the rules and regulations
3. discovered by regional and district officials

14. Which of the following taxes is not a national tax?

A. Estate and donors tax

B. Other percentage taxes
C. Documentary stamp tax
D. Real property tax.

Answer: D

The following taxes, fees and charges are deemed to be national internal revenue taxes. (Sec. 21, NIRC)
1. Income tax
2. Estate and donor's taxes
3. Value-added tax
4. Other percentage taxes
5. Excise taxes
6. Documentary stamp taxes
7. Such other taxes as are or hereafter may be imposed and collected by the Bureau of Internal Revenue.

Real property tax is a local tax.

15. Which of the following is not a member of the Regional Evaluation Board?

A. Regional Director
B. Assistant Regional Director
C. Revenue Collection Officer having jurisdiction of the taxpayer
D. Heads of the Legal, Assessment and Collection Div.

Answer: C

Regional Evaluation Board is composed of:

i. Regional Director as Chairman

ii. Asst. Regional Director
iii. Heads of the Legal, Assessment and Collection Div.
iv. Revenue District Officer having jurisdiction over the taxpayer