positions espoused by your boss.
How will you handle this
TAX QUIZ QUESTIONS COMPILED
TAX QUIZ QUESTIONS
1. Abusayaf Tax Code nagimpose ng business tax sa sang city sa
Mindanao. Other than Abusayaf Tax Code, the same is already
subject to NIRC and local government tax law. Dr, Pachero paid
P125,000 for that business tax. As a result, there was overpayment
of taxes. In Abusayaf tax Code, no period was provided in filing the
tax refund. Can he now claim for the tax refund? If yes, in what
period?
2. Bill in the Congress for imposition of tax in the amount of 20 centavo
upon plastic bags for environmental protection. Is the bill valid?
(Suggested answer: YES, Gomez vs Palomar case)
3. Ocampo is a businessman in Laguna. There was a Revenue
Regulation stating that all those paying 25% higher than the previous
taxable year shall enjoy last priority investigation. Congressman
question saying that it is a form of tax amnesty which the secretary of
finance cannot do. What do you think is the basis of the
Congressman. If you were the Secretary of Finance. how would you
defend it?
1. (Suggested answer: Constitutional provision that tax
exemption must be approved by the absolute majority of the
Congress, Article 6)
2. Secretary of Finance may content that the last priority
investigation is not a form of tax exemption because all
return are still subject to investigation. It is just that those
who filed 25% higher has to be preferred last.
4. Ramon Uy has an agricultural land. May VAT Revenue Regulation,
hindi alam kung VAT taxpayer sya or hindi. Mr. Uy asked a Bedan
lawyer. Sabi nya VAT taxpayer sya. Pero kayong dalawa (Mr. Uy
and Bedal lawyer) hindi mo sure. if you file a return, you will suffer
onerous consequences. Decide. (medyo malabo ung pagkaconstruct
nung tanning)
5. A member of the Congress acting on the informations from
unimpeachable sources that religious institutions and churches has
so much income emanating from religious activities and other
sources proposed to impose taxes on the said income and also to
collect realty taxes on their real properties. The proposal is intended
to raise more revenues for the government which is in dire need of
the revenues to address the fiscal aqequacy needs of the country. It
was also argued that these religious institutions have the financial
capacity to pay and requiring them to share in the burdens of the
govenrment conforms with the theoretical justice rule which i one of
the basic principles of a sound tax system. As counsel working in the
office of this member of Congress, you are required to reinforce the
assignment?
6. Flexible Tariff Clause
7. Reinvestigation. 2010 nagfile ng return. Motion for Reinvestigation
granted nung 2011. Natapos investigation ng 2014. Prescribed na ba
yung assessment?
8. Electric Company subject sa franchise tax. Then, may law na
nagiimpose ng income tax sa companies na may franchise. Required
ba magpay yung mga electric company?
9. Contract entered into by LBC and DOH. Nagagree na exempted sa
vat yung transactions nila from 2010 to 2014. Nung 2013, nagkaroon
ng law na nagrrevoke ng tax exemptions sa mga carriers. Valid ba
law?
10. 4000sqm na lupa ng church. 300sqm lang ginagamit sa church
mismo, then nagdecide yung mga priests na magtayo ng veggie
garden for personal consumption. Sabi ng tax assessor, liable yun sa
realty tax. Decide.
11. PLDT was granted a tax privilege of 3% by the government "in lieu of
taxes". LGu of laguna passed an ordinance imposing a tax in all
businesses enjoying a franchise privilege.. Is PLDT exempted or
not..
12. Corporation was penalized for tax evasion. Corporation moved for
dismissal because of prematurity for the absence of tax deficiency
assessment. DOJ insist that tax deficiency assessment is not a pre-
condition. IS DOJ correct?
13. A corporation was granted a tax exemption on the issuance of bonds
and operation of public utilities. Congress revoked the exemptions
before expiry. Is the revocation constitutional?
14. City of manila imposed occupation tax on all persons exercising
various professions. Atty batas paid his taxes with protest saying that
the ordinance is discriminatory. Discuss with reasons
15. Mr reyes real estate businessman filed his 1994 income tax return on
march 25, 1995. On december 10, 1995 he left for canada as an
immigrant.After investigation on the said return, bir sent notice of
assessment to mr reyes on april 10, 1998 and posted the tax
delinquents (including him). On december 8, 1995 when he came
back as a balikbayan, upon knowing the same, filed a protest stating
that the assessment has already presribed and that he did not
receive the notice of assessment. Will the protest prosper?
16. Premature filing DOJ tax evasion
17. City of quezon city promulgated ordinance imposing a garbage fee
on all household within the city due to the recent trend in waste
mgmt and the increase in waste production by 0.66 kilogram. Is the
ordinance violative of equal protection clause and due process
clause guaranteed by the constitution? Discuss
18. Davao city imposed 0.5 percent of the assessed value of urban land
which exceeds 100k as socialized housing tax. does it violate due
process because it is discriminatory or oppressive thus
unconstitutional? Explain.
19. Someone asked a tax related law to the doj. Upon meticulous and
deep research the doj produced a formal legal opinion upon the
matter. What is the probative effect of the legal opinion to BIR.
Explain.
20. The church has 2-hectars of land. In the middle and in the south is
the church and the convent. Southeastern commercial
establishments. Northeastern idle and unoccupied. Could the entire
parcel of land be tax exempt? Explain.
21. The president of the philippines imposed additional 8% tax to tariff
pursuant to the flexible tariff clause. It immediately became effective.
Kenny contended that the law is void because there was no
recommendation from th NEDA as provided in section 401 of the
tariff code. Is Kenny's contention valid? Explain.
22. Macheco Corporation was the recipient in 2005 of 2 tax exemptions
both from Congree, one law exemptiong the company’s bond issues
from taxes and other exempting the company from taxes in the
operation of its public utilities. The two laws extending the tax
exemptions were revoked by the Congress before their expiry dates.
Were the revocations constitutional?
23. Joey Guilas, who is engaged in the trading business, entrusted to his
accountant Melencio Caunan the preparation of his income tax
return and the payment of the tax due. The accountant filed a
falsified tax return by underdeclating the sales and overstating the
expense deductions of Joey. Is Joey liable for the deficiency tax and
penalties thereon? What is the liability, if any, of the accountant?
Discuss.
24. In view of the unfavorable balance of payment condition and the
increasing budget deficit, the Pres. of the PH upon recommendation
of the NEDA issues during a recess of Congress an Executive Order
imposing an additional duty on all imports at the rate of 10% ad
valorem. The EO also provides that the same shall take effect
immediately. Carlito Viniegra, an importer, questions that legality of
the EO on the gowned that only Congress has the authority to fix the
rates of import taxes and in any event such an EO can take effect
only 30 days after promulgation and the Pres has no authority to
shorten the sad period. Are the objections of Carlito tenable?
Explain.
25. Mr Benny Ancheta is a pastor of a Protestant Church in Sorsogon
whose way of evangelisation was to distribute bibles to people whom
he is evangelizing telling them the importance of reading the bible to
deepen their faith in God. However, when he gives bible to the
people whom he evangelizes, he collect the amount of Php100
representing he const of the paper, ink and related printing expenses
but there is no profit realised from such activities. It was just a plain
cost recovery. The LGU of Sorsogon passed an ordinance requiring
the sale of all commodities within the town which includes bible to
3% sales tax based on gross receipts. The pastor refused to pay the
tax since accdng, to him he is not engaged in business when he
distributes bible and collects Php100 per bible. Should a sales tax be
imposed on his distribution of bible, the tax will diminish the proceeds
necessary to print another bible and will affect his evangelization
activity. Decide whether the Local Govt is correct in enforcing the
collection of the sales tax pursuant to the ordinance. Explain
26. Mr, Butchoy, a leading investor filed his ITR on 4/15/2013 for taxable
yr 2012. on 11/5/2013 he received a letter notice from BIR RDO,
Muntinlupa requiring him to submit his books of accounts and all
other documentary evidences which were used in preparing his tax
return. While evaluating his documents for submission to the BIR he
noticed that he committed an error in the return he filed on 4/15/2013
for having deducted as transportation expense a personal expense
representing airfares of his family incurred during their pilgrimage to
Our Lady of Akita in Japan. He decided to correct said error by filing
an amended ITR with the BIR attaching therewith the tax return
earlier filed on 4/15/2013. BIR refused to accept the filing of the
Amended ITR. Was the BIR correct? Explain
27. Taal Savings and Loan Assoc (TSLA) is a thrift bank duly licensed by
the BSP and is enjoying a tax incentive whereby for a pd of 5 yrs
starting from the commencement of its operations on 4/15/2012. It is
exempted from all taxes except income tax and local tax. TSLA
bought computer units from Octagon for which the latter added
12%VAT in addition to the selling price of the units. TSLA refused to
pay the VAT and argued that it is liable to pay only under its charter
income tax and local tax. Was the refusal of TSLA tenable? Discuss
28. Batangas West High School (BSWH) is a non-profit, non-stock edu
institution. During enrollment time, the school has big amount of
funds which are considered idle since there are no projects yet being
initiated by the school for which funds are needed. The treasurer of
BWHS decided to invest the idle funds in the money market with BPI
Capital Corp. withheld the 20% final withholding tax on the interest
income pursuant to Section 24 of the Tax Code. BWHS questioned
the withholding of the tax on the interest income on the ground that
as a non-profit, non-stock educational institution, it is exempted
under the Constitution from income tax. Decide.