FINAL EXAMINATIONS

TAXATION II
March 27, 2019 5:30 PM – 7:30 PM

INSTRUCTIONS

1. This questionnaire contains two (2) pages including this page. Check the number
of pages and their proper sequencing. You may write notes on this
questionnaire.

Read each question very carefully and write your answers in your Examination
Notebook in the same order as the questions. Write your answers only on the
front page of every sheet. Note well the allocated percentage points for each
question or sub-question. In your answers, use the numbering system in the
questionnaire.

2. Answer the questions legibly, clearly, and concisely. Start each answer on a
separate page. An answer to a sub-question under the same number may be
written continuously on the same page and the immediately succeeding pages
until completed.

3. Your answer should demonstrate your ability to analyze the facts, apply the
pertinent laws and jurisprudence, and arrive at a sound or logical conclusion.
Always support your answer with the pertinent laws, rules, and/or
jurisprudence.

A MERE "YES" OR "NO" ANSWER WITHOUT ANY CORRESPONDING

EXPLANATION OR DISCUSSION WILL NOT BE GIVEN FULL CREDIT. THUS, ALWAYS
BRIEFLY BUT FULLY EXPLAIN YOUR ANSWERS AL THOUGH THE QUESTION DOES
NOT EXPRESSLY ASK FOR AN EXPLANATION. DO NOT REWRITE OR REPEAT THE
QUESTION ON YOUR NOTEBOOK.

4. Do not write your name or any extraneous note/s or distinctive marking/son

your Notebook that can serve as an identifying mark/s (such as names that are
not in the given questions, prayers, or private notes to the Examiner). Writing,
leaving, or making any distinguishing or identifying mark in the Notebook is
considered cheating and can disqualify you.

1
 I. When is tax assessment deemed made? (5%)

II. What items are not subject to donor’s tax? (4%)

III. Will a case for tax evasion fail without a deficiency tax assessment? (5%)

IV. Differentiate VAT Sales Invoice from VAT Official Receipt. (4%)

V. What is the principle of Pre-emption or the Exclusionary Doctrine? (5%)

VI. What are the entities exempt from payment of local taxes? (5%)

VII. Discuss the administrative remedy procedure available to taxpayer for payment of local
tax BEFORE assessment. (7%)

VIII. Discuss the remedies available to taxpayer for payment of local tax AFTER assessment.
(10%)

IX. X is a Certified Public Accountant-Lawyer engaged in the practice of his two professions.
He has his main office in Legazpi City and maintains a branch in Tabaco City. X pays his
professional tax as CPA in Legazpi City and his professional tax as a lawyer in Tabaco City.
May Legazpi City, where he has his main office, require him to pay his professional tax as
a lawyer? May X refuse to pay professional tax as a CPA since he already paid his
professional tax as a lawyer? (10%)

X. Oil companies installed underground tanks in the gasoline stations located on land leased
by the oil companies from the owners of the land where the gasoline stations are located.
Are those underground tanks, which were not placed by the owner of the land but which
were instead placed there by the lessee of the land, considered as real property for
purposes of real property taxation under local government code? (7%)

XI. Who are the person/s liable to pay real property tax? (5%)

XII. What are the properties exempted from real property tax? (8%)

XIII. Cora owns a real property in Legazpi City. On July 1, 2018, she received a notice of
assessment from the City Assessor, informing her of a deficiency tax of her property. She
wants to contest the assessment. What are the administrative remedies available to Cora
in order to contest the assessment and their respective prescriptive periods? May Cora
refuse to pay the deficiency tax assessment during the pendency of her appeal? (7%)

XIV. When does importation begins and when is it deemed terminated. (5%)

XV. In smuggling a shipment of garlic, the smugglers used an eight-wheeler truck which they
hired for the purpose of taking out the shipment from the customs zone. Danny, the truck
owner, did not have a certificate of public convenience to operate his trucking business.
Danny did not know that the shipment of garlic was illegally imported. Can the Collector
of Customs of the port seize and forfeit the truck as an instrument in the smuggling? (7%)

XVI. Discuss the Doctrine of Hot Pursuit relative to the territorial jurisdiction of the Collector
of Customs. (6%)