TAX

1. Identification: Personal tax is the only tax where non-payment of which will not result to
imprinsonment.

Answer: Personal Tax

2. True or False

Statement 1: regulatory tax is a tax which is both under taxation and police power

Statement 2: Tax exemption is a waiver by the government’s right to collect tax

Answer: True, False

3. True or False

Statement 1: criminal in nature is one of the characteristic of internal revenue laws

Statement 2: Real property tax is not an example of excise tax

Answer: False, True

4. Identification: a form of tax escape through which one is given tax immunity wherein others are
subjected to tax.

Answer: Tax Exemption

5. True or False

Statement 1: tax code prevails over the civil code

Statement 2: tax regulations promulgated by the SOF need not be published in a newspaper of general
circulation

Answer: True, False

 6. True or False

Statement 1: courts can review or inquire into the wisdom or advisability of a tax law

Statement 2: our constitution does not contain any provision granting tax exemption to the government

Answer: False, True

7. True or False

Statement 1: tax imposed outside the situs of Taxation is void

Statement 2: international comity is an exemption to the territoriality doctrine

Answer: True, False

8. True or False

Statement 1: the income from bank deposit of a tax-exempt catholic church is taxable

Statement 2: the charitable contributions given to a church are also taxable

Answer: False, True

9. What kind of taxes, fees and charges are considered as National Internal Revenue Taxes under
the NIRC
I. Income taxes
II. VAT
III. OPT
IV. RPT
V. Excise Taxes
VI. Poll Taxes
VII. Documentary Stamp Taxes
VIII. Donor’s Tax

Answer: I, II, III, V, VII, VIII

 10. How will the local government units be able to exercise their taxing powers?
a. By local legislation
b. By authority conferred by congress
c. By the issuance of the department of finance
d. By the help of the BIR

Answer: A

11. True or false

Statement 1: motor vehicle registration fees are now considered regulatory tax

Statement 2: The NIRC is also known as RA 8424

Answer: True, True

12. Where does taxing power of the provinces, municipalities, and cities precede from
a. Constitutional grant
b. Legislative enactment
c. Presidential or executive act
d. Local legislation

Answer: A

13. True or False

Statement 1: properties actually, directly and exclusively used for religious purposes are exempt from
real property tax

Statement 2: to make a BIR ruling of first impression a valid one must by prospective in application

Answer: True, False

14. The least source of tax laws

a. Statutes
b. Presidential decrees
c. Revenue regulations
d. Tax conventions

Answer: C
 15. True or False

Statement 1: Barrios has no power of taxation

Statement 2: customs duty is a tax

Statement 3: a special assessment is a tax

Answer: True, True, False

16. Which is the correct and best statement? A tax reform at any given time underscores the fact
that:
a. Taxation is an inherent power of the state
b. Taxation is essentially a legislative power
c. Taxation is a power that is very broad
d. The estate can and should adopt progressive taxation

17. Identification: it is the basis of taxation. ___________________

Answer: benefit-protection theory

18. Identification: a suit questioning the validity of a tax statute is: _______________

Answer: Taxpayer’s suit

19. True or false

Statement 1: the RDO is known as the alter ego of the BIR Commissioner

Statement 2: The BIR Commissioner is directly under the President’s Office

Answer: False, False

20. True or false

Statement 1: margin fee is a tax

Statement 2: custom’s duty is a tax

Answer: False, True

 21. The prescription of check or warrant refund or tax credit shall be within ______ from the date of
issue.

Answer: 5 years

22. the seizure by the government of real property to enforce the payment of taxes to be followed
by its public sale if the taxes are not voluntarily paid. __________

Answer: Levy

23. the official action of an officer authorized by law in ascertaining the amount of tax due under
the law from a taxpayer is _______________

Answer: Assessment

24. The following are the remedies of the government in tax collection, except
I. Tax lien
II. Compromise
III. Forfeiture
IV. Protest

Answer: IV only

25. Occupying the forefront of tax law enforcement is the: ___________________

Answer: BIR

26. The chief officials of the BIR shall be composed of ___ commissioner and ____ deputy
commissioners.

Answer: 1 commissioner and 6 deputy commissioners

27. The authorities of the commissioners include the following, except:

I. Compromise the payment of any internal revenue tax
II. Abate a tax liability
III. Credit or refund tax that had been erroneously received
 IV. Inquire into bank deposit

Answer: IV only

28. Which of the following is a proper way to deliver a final assessment notice?
I. Substituted services
II. Personal service
III. Electronic messaging
IV. Registered mail

Answer: I, II, IV only

29. What is the prescriptive period for an assessment fraud? ______________

Answer: 10 years from discovery

30. True or False

Statement 1: In filing a protest with the BIR, reinvestigation or consideration may be availed by the
taxpayer simultaneously.

Statement 2: there is prima facie evidence of a false or fraudulent return where the deductions claimed
exceeds by 30% the actual deduction

Answer: True, True

31. A person who inherits a personal property thru a will: ____________

Answer: Legatee

32. Succession wherein the decedent did not leave any will: ____________

Answer: Legal Succession

33. The taxpayer in estate tax is the: ______________

Answer: administrator or executor

 34. The notice of death must to be filed when
a. The gross estate exceeds 2M
b. The gross estate exceeds 5m
c. The gross estate reaches 200k
d. Not required anymore

Answer: B

35. Who has the authority to collect community tax? _______________

Answer: LGU

36. A documentary stamp tax is necessary in:

I. Sale of real property
II. Inheritance of real property
III. Estate tax payment
IV. Donation of real property

Answer: I only

37. The RATE program of the BIR is to eradicate

I. Underground economy
II. Smugglers
III. Evaders
IV. Unregistered taxpayer

Answer: III only

38. What are the authority and function of collector of customers:

I. Cause all importer articles to be entered in customs
II. Classify and assess imported articles
III. Collect customs duties and tariff
IV. Forfeit and destroy contraband goods

Answer: I, II, III

 39. Idle lands are exempt from real property tax under the following circumstances
I. Civil disturbance
II. Natural calamity
III. Any cause which physically or legally prevented the owner to utilized his land
IV. Declared by the president

Answer: I, II, III

40. Who has the authority to cause all importation to be entered in the custom warehouse?

Answer: Collector of customs