New Era University

College of Accountancy

INCOME TAXATION
FINALS QUIZ NO. 4A

Name: _______________________________________________ Section: ________________ Score: _________

I. TRUE OR FALSE (1 point each). Write “True” if the statement is correct. Otherwise, write “False”.

1. Accounting period may be less than twelve months.

2. Each taxpayer is required by law to make a return of his true income.
3. Internal revenue taxes must be assessed within three (3) years after due date.
4. Delinquent accounts may be compromised.
5. A tax amnesty that forgives tax delinquency of prior years is a legislative act of the government.
6. All corporations, partnerships or persons required by law to pay internal revenue taxes shall keep books of
account or records or their equivalent.
7. A conviction for tax evasion is not a bar for collection of unpaid taxes.
8. Pre-assessment notice shall not be required when the finding for any deficiency tax is the result of
mathematical error.
9. Compromise may be entered into based on doubtful validity of the assessment.
10. Failure to keep/preserve books of accounts and accounting records cannot be subjected to compromise
penalties.

II. MULTIPLE CHOICE (1 point each). Write the letter before the number.

1. An assessment shall become final if not protested administratively or if such protest is not filed with the
BIR, from receipt of the assessment within
a. 30 days b. 60 days c. 90 days d. 180 days

2. Using the preceding number, relevant supporting documents must also be presented to the BIR, from filing
the protest on the assessment (request for reinvestigation) within
a. 30 days b. 60 days c. 90 days d. 180 days

3. From the date of payment, claim for refund or taxes erroneously or illegally received or penalties imposed
without authority must be filed within
a. 2 years b. 3 years c. 5 years d. 10 years

4. In case of an assessment of a tax

a. The assessment should be made within 3 years from the date of filing of the return
b. The assessment should be made within 3 years from the date the return is due
c. A protest should be made on time, otherwise the assessment becomes final and executory
d. A protest may be filed any time before the BIR collects the tax

5. Date of payment of tax erroneously paid April 15, 2016

Date a claim for refund was filed January 15, 2017
Date a decision of denial by the BIR was received September 15, 2017

Last day to appeal to the CTA is

a. April 15, 2018 c. November 15, 2017
b. January 15, 2018 d. October 15, 2017

6. Using the preceding number, if the date of decision of denial by the BIR was received on March 31, 2018,
the last day to appeal to the CTA is
a. April 30, 2018 c. March 31, 2019
b. April 15, 2018 d. May 30, 2019

7. Date assessment was received March 8, 2018

Date petition for reinvestigation was filed with the BIR March 18, 2018
Date filing of documents to support the petition May 8, 2018
Date decision of denial of the petition was received September 28, 2018

The last day to appeal to the CTA is

a. April 15, 2019 c. December 8, 2018
b. November 8, 2018 d. October 28, 2018

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8. Which of the following is correct?
a. A protest should be filed by the taxpayer, otherwise the assessment becomes final and can no longer
be questioned in court
b. A protest may be filed by the taxpayer anytime before the BIR collects the tax
c. The assessment should be made by the BIR within five years from the filing of the return
d. The assessment shall include only the tax proper

9. Which of the following statements is incorrect?

a. As a rule, a pre-assessment notice shall be required before a final assessment may be made
b. The taxpayer shall be informed of the law and the facts on which the assessment is made, otherwise the
assessment shall be void
c. The Commissioner may refund a tax even without a claim of refund from the taxpayer where on the
face of the return upon which the payment was made, such a payment clearly appears to have been
erroneously made
d. A suit to recover tax previously paid may be brought even after the lapse of two years from the date of
payment, if any supervening cause arises after payment

10. Which of the following will not interrupt the running of the prescriptive period for assessment and
collection of taxes?
a. When the Commissioner is prohibited from making the assessment or beginning distraint and levy or a
proceeding in court and for thirty (30) days after
b. When the taxpayer requests for the reinvestigation which is granted by the Commissioner
c. When the taxpayer is out of the Philippines
d. When the taxpayer cannot be located in the address given by him in the return

11. It is the official action of an administrative officer in determining the amount of tax due from a taxpayer, or
it may be a notice to the effect that the amount stated therein is due from the taxpayer with a demand for
payment of the tax or deficiency stated therein.
a. Tax lien
b. Tax audit
c. Tax assessments
d. Tax mapping

12. Which of the following is not a remedy of the government in tax collection?
a. Tax lien
b. Compromise
c. Forfeiture
d. Protest

13. Which of the following statements if true? The Bureau of Internal Revenue shall have a Commissioner and
a. 1 deputy commissioner
b. 4 deputy commissioners
c. 3 deputy commissioners
d. 10 deputy commissioners

14. A notice to the effect that the amount therein stated is due from a taxpayer as a tax with a demand for
payment of the same within a stated period of time –
a. Audit engagement letter c. Demand letter
b. Protest letter d. Assessment

15. Tabag filed his 2017 Income Tax Return and paid the tax due thereon on April 1, 2018. The last day for the
Bureau of Internal Revenue to send an assessment is –
a. April 1, 2021 c. April 15, 2023
b. April 1, 2023 d. None of the above

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