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Is an official document that encounters a revenue officer to examine and scrutinize a taxpayer’s books of accounts and other accounting records, I order to determine the taxpayer’s correct internal revenue and tax liabilities. A. Letter of Authority Statement 1: The Bureau of Internal Revenue (BIR) ...

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1. Is an official document that encounters a revenue officer to examine and scrutinize a taxpayer’s books of accounts and other accounting records, I order to determine the taxpayer’s correct internal revenue and tax liabilities. A. Letter of Authority 2. Statement 1: The Bureau of Internal Revenue (BIR) must issue an LOA prior issuing a PAN, FAN, FDDA. Statement 2: Absence of a letter of authority makes the assessment unauthorized and thus, void. B. Both statements are correct 3.______ is issued if after review and evaluation by the commissioner or his duly authorized representative, as the case may be, it is determined that there exists sufficient basis to assess the taxpayer for any deficiency tax or taxes. A. Preliminary assessment notice (PAN)

4.As a rule, PAN is used to a taxpayer as the first step in assessment. It serves as a notice that the taxpayer still has some taxes due. PAN is issued when: D. All of the above 5.Preliminary assessment notice is not required in the following cases except: B. Tax deficiency is due to unpaid VAT 6.A written notice and demand by the BIR on the taxpayer for the settlement of a due tax Liability that is there definitely set and fixedA. Assessment 7.A pre-assessment notice is required A. When a discrepancy has been determined between the amount of the sales declared and the purchases recorded by the seller’s customers. 8.Statement 1: The format letter of demand (FLD) assessment notice (FAN) shall be issued by the commissioner or his duty authorized representative. Statement 2: The FLD/FAN calling for the payment of the taxpayer’s deficiency tax or taxes shall state the facts, the law, rules and regulation, or jurisprudence on which the assessment is based; otherwise, the assessment shall be void. C. Both statements are correct 9. Which of the following statement is not true:

C. A tax assessment is necessary to a criminal prosecution for willful attempt to defeat and evade payment of taxes. 10.Where a return was filed, as a general rule, the prescriptive period of assessment after the date return was due or was filed, whichever is later, is within. A. Three years 11. Allan filed his ITR for 2018 on October 15, 2019. The last day for BIR to assess is on ? B. October 15 2022 12. Donors tax returns for a donation made on January 15, 2018 was filed on January 31, 2018. Last day for BIR to assess is on? C. February 14, 2021 13. Based on the preceding number, but assume the return filed was fraudulent and was discovered on March 31, 2018. The last day for BIR to assess is on? D. March 31, 2018 14. Mr. A seasonably filed a protest and submitted supporting documents with the BIR. Within how many days shall the former await the decision of latter before he assumes that the protest has been indirectly denied? A.180 days 15.If the taxpayer did not file a return, what is the prescriptive period for the issuance of Final Assessment Notice? D. Ten (10) years counted from the date of discovery by the bureau of Internal Revenue that no return was filed 16. Rosalie, a compensation income earner, filed her income tax return for the taxable year 2015 on March 30, 2016. On May 20, 2019, Rosalie received an assessment notice and letter of demand… Can Rosalie raise the defense of prescription? A. No. The 3 year prescriptive period started to run on April 25, 201, hence it is not yet expired on April 10, 2019. 17. On April 15, 2016, the commissioner of internal revenue mailed by registered mail the final assessment notice and the demand letter covering the calendar year 2012 with the QC Post Office. Which statement is correct? (2012 Bar Question) D. The assessment notice is valid even if the taxpayer received the same after the three-year period from the date of filing the return. 18. On march 30, 2016, Emmett Foods, Inc. received a notice of assessment and a letter of demand on April 15, 2012

On April 15, 2020, the bir garnished the corporation’s bank deposits to answer for the tax liability. Was the BIR action proper? B. Yes the BIR has 5 years from the issuance of the final assessment within which to collect. 19. On march 20, 2018, continental Inc. received a preliminary assessment notice (PAN) dated March 1, 2018 issued by the commissioner of Internal revenue (CIR) for deficiency income tax for its taxable year 2016. 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? B. No the issuance of preliminary assessment notice (PAN) does not give rise to the right taxpayer to protest. What can be protested… 20. Omega corporation received a notice of assessment and letter form the BIR demanding THE Payment of P3million pesos in deficiency income taxes for the taxable year 2018. Which among the following may the BIR require to enable it to enter into compromise with Omega? C. Omega must waive its right to the secrecy of its bank deposits. 21. refers to a plea of re-evaluation of an assessment on the basis of existing records without need of additional evidence. It may involve a question of fact of law or both. C. Request for reconsideration 22. refers to plea of re-evaluation of an assessment on the basis of a newly discovered or additional evidence that a taxpayer intends to present in the reinvestigation. It may involve a question of fact or of a law or both. D. Motion for re-investigation 23. The taxpayer shall state in his protest D. All of the above 24, As a rule, within what period must a taxpayer elevate to the court of Tax appeals a denial of his application for refund of income tax overpayment? C. Within 30 days from receipt of the denial which must not exceed 2 years from payment of income tax. 25. What is the effect on the tax liability of a taxpayer who does not protest an assessment for deficiency taxes? C. The taxpayer’s liability becomes fixed and subject to collection as the assessment becomes final and collectible. 26. The taxpayer seasonably filed his protest together with all the supporting documents. It is already June 31, 2018, or 180 days from submission of the protest

Desirous of an early resolution of his protested assessment, the taxpayer should file his appeal to the court of tax appeals, not later than B. August 30, 2018 27. Mr. Alvarez is in the retail business. He received a deficiency tax assessment from the BIR containing only the computation of the deficiency tax and penalties, without any explanation of the factual and legal bases for the assessment. Is the assessment valid? B. The assessment is invalid; the law requires a statement of the facts and the law upon which the assessment is based. 28. Which among the following circumstances negates the prima facie presumption of correctness of a BIR assessment? C Proof that the assessment is utterly without foundation, arbitrary and capricious. 29. What is the effect on the tax liability of a taxpayer who does not protest an assessment for deficiency taxes? C. The taxpayer’s liability becomes fixed and subject to collection as the assessment becomes final and collectible. 30. Statement 1: A tax due from the taxpayer whose amount does not justify the expenses to be incurred in collecting it may be compromised. Statement 2: In case of false or fraudulent return with intent to evade the tax, assessment may be validly made on the 10th year from discovery thereof and collection may be affected within five (5) years thereafter. B. Both statements are not correct. 31. Statement 1: Where the tax withheld as shown on the tax return and the actual tax remitted by the withholding agent to the Bureau of Internal Revenue (BIR) do not match a final notice of assessment (FAN) may be issued without need of a pre-assessment notice. Statement 2: The taxpayer who filed a protest case has 180 days from the filing of the written request for reinvestigation to elevate an appeal to the Court of Tax Appeals (CTA) in case the Commissioner of Internal Revenue (CIR) fails to act on the protest. C. Only the first statement is correct. 32. Albert received a final assessment notice (FAN) from the BIR on October30,2019.He submitted his protest and the supporting documents within the time prescribed by the Law. After 180 days, the subsequent step/s available to him shall be : I. Elevate the case on appeal to the CTA, alleging inaction of the CIR within 30 days from the 180 th day since he submitted the supporting documents on his protest. II. Wait for the decision of the Commissioner of Internal Revenue 9CIR) and if adverse, appeal the case before the CTA within thirty days.

D. I or II 33. On March 27,2012, the Bureau of Internal Revenue(BIR) issued a notice of assessment against Blue Water Industries Inc. (BWI), a domestic corporation ,informing the latter of its alleged deficiency corporate income tax for the year 2009. Is the contention of the BIR correct? ( 2014 Bar Question) A. No, Notwithstanding the lapse of the 180-day period , BWI had the option to await the BIR’S final decision on its protest before filing a Petition for Review with the CTA. 34. The taxpayer seasonably filed his protest together with all the supporting documents. It is already July 31, 2018, or 180 days from submission of the protest but the BIR Commissioner has not yet decided his protest.Desirous of an early resolution of his protested assessment .the taxpayer should file his appeal to the Court of Tax Appeals not later than : ( 2011 BAR Question ) B. August 30, 2018 35. Spanflex Int’l Inc. received a notice of assessment from the BIR. It seasonably filed a protest with all the necessary supporting documents but the BIR failed to act on the protest. What remedy, if any, can Spanflex take? (2011 BAR Question) B. It may wait for the final decision of the BIR on his protest and appeal it to the CTA within 30 days from receipt of such decision. 36. The running of the prescriptive period for assessment is suspended except: D. If the taxpayer informs the Commissioner of any change in address. 37. Statement 1: A tax return , statement of declaration filed by a taxpayer may be modified by the taxpayer. 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. C. Statement 1 and 2 are true. 38. Which of the following statements is incorrect? D. If the return was amended substantially, the period starts from the due date of the return. 39. Zenaida filed her 2018 Income Tax Return(ITR) on April 10,2019. On June 20,2019, she filed an amended return which is substantially different from the original return.The last day to release , mail or send an assessment is___ C. June 20,2022 40. Which of the following rules governs the prescription for the violation of the Tax Code? 1st Rule: Prescription starts from the day the law is violated and if the same is not known, prescription starts from the discovery of violation thereof.

2nd Rule: All violations of any provisionof the Tax Code shall prescribe after 10 yrs. D. 1st rule correct, 2nd rule wrong. 41. Which of the following prescriptive period for the BIR to conduct a tax audit is correct? D. All of the above 42. Marcelina filed her 2018 Income Tax Return and paid the tax due thereon on April1,2019. The last day for the Bureau of Internal Revenue to send an assessment is__ C. April 15,2022 43. Apolonio filed his Income Tax Return (ITR) for taxable year 2018 on May 2,2019.After an investigation ,it was discovered that the tax paid was deficient. The last day for the BIR to send an assessment B. May 2,2022 44. The last day for the taxpayer to submit relevant supporting documents is C. September 2, 2018 45. Assuming that the taxpayer submitted the documents supporting his motion on August 26,2018. The Bureau of Internal Revenue should act on the protest not later than D. February 22,2019 46. Based on the preceding number and assuming that the BIR did not act on the protest . the last day for the taxpayer to appeal to the Court of Tax Appeals ( in case he opted to elevate the case to the CTA after indirect denial) is B. March 24,2015 47. A taxpayer received an assessment notice on January 5,2018.He files a motion for reconsideration with the BIR on January 15,2018. WHEN is the last day for the submission of complete documents to support his motion for reconsideration? D. Not required to submit 48. STATEMENT 1: In the event the taxpayer fails to submit within 60 days the relevant supporting documents for a request for reinvestigation, the assessment shall become final and executory. STATEMENT2: All decision on protest to the FAN ,wether the taxpayer’s protest is acceptedor denied partially or wholly, shall be communicated to the taxpayerthrough the issuance of a Final Decision ON Disputed Assessment. (FDDA) C.Both statements are correct 49. STATEMENT 1: All protest shall be considered a request for reinvestigation,unless said protest clearly indicatesthat the request is for reconsideration.

STATEMENT 2: A request for reinvestigation shall be available in the protest to FAN/FLD only. After the issuance of FDDA , a request for reinvestigation shall no longer be available to the taxpayer as a remedy. B. Only statement 2 is correct 50. A taxpayer disclosed the following information: Date of filing 2011 ITR

May 12,2017

Received assessment of deficiency income tax

October 10,2018

Protest was filed

October 30,2018

Submission of supporting document

December 5,2018

Received denial of protest

April 20,2019

THE last day to appeal the decision of the BIR to the Court of Tax Appeal is B. May 20,2019 51. On May 15,2013,CCC Inc. received the Final Decision on Disputed Assessment issued by the Commissioner of Internal Revenue (CIR) dismissing the protest of CCC Inc. and affirming the assessment against said corporation. On July 31, 2015, dismissing its petition (2015 Bar Question) 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. Before the CTA en banc could take cognizance of the petition for review concerning a case falling under its exclusive appellate jurisdiction, the litigant must sufficiently show that it sought prior reconsideration or move for a new trial with the concerned CTA division. C.Both Statements are correct 52. The term”The assessment shall become final”shall mean; C.Both “a” and “b” 53. Mang Ben filed an income tax return for the calendar year 2018 on March 10,2019. The BIR issued a Formal Letter of Demand /Final Assessment Notice on April 10, 2021 which has become final, executorty and demandable. When is the last day for the BIR to collect? A.April 10, 2026 54. Which of the statement regarding collection of tax assessment is incorrect? D. Neither I nor II 55. The distinction between actual distraint and constructive distraint is that: B. In actual distraint, there is taking of possession, while in constructive distraint, the taxpayer is merely prohibited from disposing of the property.

56. The property of delinquent taxpayer shall not be placed under constructive distraint by the commissioner of the internal revenue if in his opinion the taxpayer is C. Doing all the possible means to dispute the assessment 57. A car dealer could not pay his taxes on sales. The dealer delivered several units of the to the Bureau of Internal Revenue in payment of the taxes. Which of the following statement is correct? D. This not a valid procedure for collection of a tax. 58. A contract whereby the taxpayer and the government by reciprocal concessions avoid a litigation or put an end to one already commenced. B. Compromise 59. One of the following violations cannot be subject to compromise? D. Keeping two sets of books of accounts or records. 60. Statement 1. The commissioner of internal revenue is Authorized to inquire into the bank deposit of a taxpayer who has filed an application for compromise of his tax liability by reason of financial incapacity to pay. Statement 2. 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 10% of the basic assessed tax. C. Both statements are true 61. Fortuna Hotel Inc. using calendar year accounting period, overpaid its 2018 second quarter income tax and it failed to correct the said overpayment on the computation of its annual income tax.How shall the taxpayer recover the excess tax paid? D.File a claim refund with the BIR within two (2) years form April 15 2019 62. Where any national internal revenue tax is alleged to have been erroneously or illegally collected by the BIR the taxpayer should first: A. File a claim for refund or credit with the CIR 63. From the date of payment, claim for refund of taxes erroneously or illegally received or penalties imposed without authority must be filed within: A.2 years 64. Bam paid his income tax liability for 2017 on April 15, 2018. It was found out later on June 30, 2018 that he was overpaid by more than 100000 pesos. The last day to file a claim for tax refund is? A. April 15, 2020 65. Assuming his claim for the tax refund in the preceding number was denied and the denial was received on April 30 2020.The proper remedy available to Bam is?

D.NO more remedy since the 2-year period already expired 66. Mr. Bong filed his 2018 income tax return and paid the tax due in April 1, 2019. In case of overpayment, the last day to file claim for refund is on A. April 1, 2021 67. The last day for the taxpayer to claim refund if the tax was paid In installment is B. Two (2) years from the date of final payment 68. As a general rule, within what period must a taxpayer elevate to the Court of Tax Appeals a denial of his application for refund of income tax overpayment? (2011 Bar Question) B. Within 30 days from receipt of the denial which must not exceed 2 tears from payment of income tax. 69. In case of full or partial denial of the written claim for refund or excess input tax directly attributable to zero rated sales or the failure on the part of the Commissioner to act on the application within 120 days from the date of submission of complete documents, an appeal must be filed with the CTA (2012 Bar Question) D. Within 30 days from the receipt of the decision denying the claim or after the expiration of the 90 day period under the TRAIN law. 70. Statement 1: The filing of the quarterly income tax returns and payment of quarterly income tax by corporation are mere installment and therefore not the basis in computing the two-year prescriptive period for refund Statement 2: If the tax has been withheld from sources (withholding the wages), the prescriptive period for refund is counted from the date it falls due at the end of the taxable year. C. both statements are true 71. Amount of tax per ITR

30000 pesos

Withholding tax

20000 pesos

First installment payment

March 28, 2018

Second installment

July 1, 2018

Last day to claim refund

?

C.July 1 2020 72. The following information was disclosed to ou: Erroneous payment of tax

April 15 2018

Claim for refund was filed

Feb 18 2019

Receipt of BIR decision denying claim for refund

July 5 2019

The last day to appeal to the Court of Tax Appeals is

B .August 4 2019 73.Which statement is correct? In case of a tax erroneously collected D. A claim for refund must be filed with the Bureau of Internal revenue and, in a given situation, a case for refund may be filed with the court without awaiting the decision of the Bureau. 74. X corporation had excess income tax payment for the year 2008, which it chose to carry over in 2009.In filing its 2009 corporate income tax return, it signified its intention (by checking the small box “refund” at the bottom of the return) to get the refund of the overpaid amount in 2008. Can the refund be allowed or not, and if disallowed, do...