Raven Louise Dahlen BSAMA-3 06-07-2021

1. Which of the following is not true?

a. If the taxpayer is acquitted in a criminal violation of the tax code, this acquittal does not
exonerate him from his civil liability to pay the taxes. 
b. A conviction for tax evasion is not a bar for collection of unpaid taxes. 
c. A tax assessment is necessary to a criminal prosecution for wilful attempt to defeat
and evade payment of taxes. 
d. Criminal proceedings under the tax code is now a mode  of collection of internal revenue
taxes, fees and charges. 

2. The term “the assessment shall become final” shall mean:

a. Taxpayer is barred from disputing the correctness of the issued assessment by

introduction of newly discovered or additional evidence. 
b. No request for reconsideration or reinvestigation shall be granted on assessment that has
become final, executory and demandable. 
c. Both a and b. 
d. Neither a nor b. 

3. Mang Ben filed an income tax return for the calendar year 2018 on March 10, 2019.
The BIR issues formal letter of demand on April 10, 2021 which has become a final
executory and demandable. When is the last day for the BIR to collect?

a. April 10, 2026 b. April 15, 2020 c. April 15, 2022 d. March 10,
2020

4. Which of the statements regarding collection of tax assessment is incorrect?

I. Within five years from assessment. 

II. Within 10 years in case there is no assessment and in the case of false or fraudulent
returns with intent to evade the tax. 
a. I only b. II only c. Both d. Neither I nor II

5. The BIR Commissioner may compromise payment of internal revenue taxes when:
 1 ground: A reasonable doubt as to the validity of the claim against the taxpayer
st

exist. 
2 ground: The financial position of the taxpayer demonstrates a clear inability to
nd

pay tax. 

a. Both grounds are wrong. 

b. 1 ground is wrong; 2 ground is correct
st nd

c. Both grounds are correct 

d. 1 ground is correct; 2 ground is wrong.
st nd

6. The seizure by the government of personal property to enforce the payment of taxes
to be followed by its public sale if the taxes are not voluntarily paid is called:

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

7. Where any national Internal Revenue Tax is alleged to have been erroneously or
illegally collected, the taxpayer should first:

a. File a claim for refund or credit

b. File an action for refund with the Regional Trial Court.
c. File an action for refund with the Court of Tax Appeals.
d. File a claim of refund or credit with the Secretary of Finances. 

8. The running of the perspective period for assessment and collection of taxes is
suspended under the following circumstances, except one:

a. When the taxpayer is out of the country.

b. When the BIR Commissioner is prohibited from assessing or collecting the tax. 
c. When the taxpayer request for reinvestigation. 
d. When the warrant of distraint and levy is duly served.
 
9. The following are administrative remedies of the taxpayers, except;

a. Protest the assessment within the reglementary period.

b. Tax minimization scheme.
c. Appeal the decision of the Revenue District Officer/Revenue Director to the
Commissioner of Internal Revenue.
 10.  On May 15, 2013, CCC Inc., received the final decision on disputed assessment
issued the commissioner of internal revenue (CIR) dismissing the protest of CCC
Inc., and affirming the assessment against the said Corporation. On June 10, 2013,
CCC Inc., filed a petition for review with the CTA in division. On June 31, 2015,
CCC Inc. received a copy of the decision dated July 22, 2015 of the CTA division
dismissing its petition.

Statement 1 – CCC Inc. may immediately file a petition for review with the CTA en banc
on August 6, 2015.
Statement 2 – CCC Inc. should first file a motion for reconsideration with the CTA
division. Petition for review of a decision or resolution of the court in division must be preceded
by the filing of a timely motion for reconsideration or new trial with the division. Before the CTA
En banc could take cognizance of the petition for review concerning case falling under its
exclusive appellate jurisdiction, the litigant must sufficiently show that it sought prior
reconsideration or moved for a new trial with the concerned CTA division.

a. Only statement 1 is correct

b. Only statement 2 is correct
c. Both are correct
d. Both are Incorrect

11. What is the difference between request for reconsideration and request for
reinvestigation?

-  Request for reconsideration refers to a plea of re-evaluation of an assessment on the basis of

existing records without need of additional evidence. While, request for reinvestigation on the
other hand refers to a plea of re-evaluation of an assessment on the basis of newly discovered
or additional evidence.

12. When the taxpayer received the Final decision of the commissioner of internal
revenue (CIR), what are the two paths that the internal revenue give?

- The taxpayer may either end the assessment by paying; or he may choose a longer
route by requesting a reconsideration from the Commissioner of Internal Revenue (CIR)
or by filing a petition for review before the Court of Tax Appeals (CTA)

13. What is tax remedies for?

- Tax remedies are meant to protect taxpayers against unjust assessments. But
taxpayers are expected to do their part and be aware of the consequences of their
choices.

14. What are the remedies for Tax payer before  payment?

 Request for reconsideration

 Request for reinvestigation
 Administrative protest
 Judicial protest

15. What are the remedies for Tax payer after payment?

 Claim for tax refund

 Claim for tax credit

16.It represents an interest-free loan that the taxpayer made to the government?

 A tax refund is a reimbursement to a taxpayer of any excess amount paid to the

federal government or a state government. Also, taxpayers tend to look at a refund as a
bonus or a stroke of luck, but it most often represents an interest-free loan that the
taxpayer made to the government. In most cases, it is avoidable.

17.Help to boost your household income and can be worth thousands of pounds
each year ?

 Tax credits help to boost your household income and can be worth thousands

of pounds each year.

18. What are the 3 types of Tax Credit?

 Nonrefundable Tax Credit

 Refundable Tax Credit
 Partially refundable Tax Credit

19. On March 10, 2010, Continental, Inc. received a preliminary assessment notice
(PAN) dated March 1, 2010 issued by the Commissioner of Internal Revenue (CIR)
for deficiency income tax for its taxable year 2008. It failed to protest the PAN.
The CIR thereupon issued a final assessment notice (FAN) with letter of demand
on April 30, 2010. The FAN was received by the corporation on May 10, 2010,
following which or on May 25, 2010, it filed its protest against it.
The CIR denied the protest on the ground that the assessment had already
become final and executory, the corporation having failed to protest the PAN. Is
the CIR correct? Explain.

- The issuance of preliminary assessment notice (PAN) does not give rise to the right of
the taxpayer to protest. What can be protested by a taxpayer is the final assessment
notice (FAN) or that assessment issued following the PAN. Since the FAN was timely
protested, within 30 days from receipt thereof, the assessment did not become final and
executory.

20. Mr. Tiaga has been a law-abiding citizen diligently paying his income taxes.
On May 5, 2014, he was surprised to receive an assessment notice from the
Bureau of Internal Revenue (BIR) informing him of a deficiency tax assessment as
a result of a mathematical error in the computation of his income tax, as
appearing on the face of his income tax return for the year 2011, which he filed on
April 15, 2012. Mr. Tiaga believes that there was no such error in the computation
of his income tax for the year 2011. Based on the assessment received by Mr.
Tiaga, may he already file a protest thereon?

- Yes, Mr. Tiaga may already file a protest. Rev. Regs. No. 18-2013, implementing Sec.
228 of the Tax Code, states that no PAN is required if the deficiency tax is a result of a
mathematical error in the computation of tax as appearing on the face of the tax return.
In such case, an FLD/FAN shall be issued outright. Thus, the assessment notice sent
by the BIR is deemed an FLD/FAN which may be the subject of a protest.