QUIZZER

Choose the letter of the correct answer:

1. Preliminary assessment notice is not required in the following cases, except:
a. Tax deficiency is due to mathematical error
b. Tax deficiency is due to unpaid VAT
c. Tax deficiency is due to unpaid excise taxes
d. Tax deficiency is due to withholding tax
2. 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 fixed-
a. Assessment
b. Forfeiture
c. Audit engagement letter
d. Institution of criminal action

3. A pre-assessment notice is required

a. When a discrepancy has been determined between the amount of sales declared and the purchases
recorded by the seller's customers.
b. When a discrepancy has been determined between the tax withheld and the amount actually remi
tted by the withholding agent.
c. When an article locally purchased or imported by an exempt person has been sold, traded or
transferred to non-exempt persons,
d. When the deficiency tax is the result of mathematical errors in the computations appearing on the
face of the return.

4. Which of the following statements is not true?

a. If a taxpayer is acquitted in a criminal violation of the Tax code, this acquittal does not
exonerate him from his civil liability to pay the taxes.
b. A conviction for tax evasion is not a bar for collection of unpaid taxes.
c. A tax assessment is necessary to a criminal prosecution for willful attempt to defeat and
evade payment of taxes
d. Criminal proceedings under the Tax code is now a mode of collection of internal revenue
taxes, fees or charges.
5. Where a return was filed, as a general rule, the prescriptive period for assessment after the date
the return was due or was filed, whichever is later, is within
a. Three years b. Ten years c. Five years d. Answer not given.

6. Allan filed his ITR for 2014 on October 15, 2015. The last day for BIR to assess is on?
a. October 15, 2020 c. October 15, 2018
b. October 14, 2018 d. April 15, 2018

7. 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 c. 60 days
b. 90 days d. 30 days
8. Fortuna Hotel Inc., using calendar year accounting period, overpaid its 2014 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?
a. File a claim for refund with the BIR within three (3) years from August 29, 2014,
b. File a claim for refund with the BIR within three (3) years from April 15, 2015
c. File a claim for refund with the BIR within two (2) years from August 29, 2014,
d. File a claim for refund with the BIR within two (2) years from April 15, 2015
9. Rosalie, a compensation income earner, filed her income tax return for the taxable year 2012 on
March 30, 2013. on May 20, 2016, Rosalie received an assessment notice and letter of demand
covering the taxable year 2012 but the postmark on the envelope shows April 10, 2016. Her
return is not a false and fraudulent return. Can Rosalie raise the defense of prescription?
a. No. The 3 year prescriptive period started to run on April 15, 2013, hence, it has not yet
expired on April 10, 2016.
b. Yes. The 3 year prescriptive period started to run on April 15, 2013, hence, it had already
expired on May 10, 2016.
c. No. The prescriptive period started to run on March 30, 2013, hence, the year period expired
on April 10, 2016.
d. Yes. Since the 3-year prescriptive period started to run on March 30, 2013, it already expired
by May 20, 2016.

10. What is the effect on the tax liability of a taxpayer who does not protest an assessment for
deficiency taxes?
a. The taxpayer may appeal his liability to the CTA since the assessment is a final decision of the
Commissioner on the matter.
b. The BIR could already enforce the collection of the taxpayer’s liability if it could secure
authority from the CTA
c. The taxpayer’s liability becomes fixed and subject to collection as the assessment becomes
final and collectible.
d. The taxpayer’s liability remains suspended for 180 days from the expiration of the period to
protest.

11. On March 30, 2012 Emmett Foods, Inc, received a notice of assessment and a letter of demand
on its April 15, 2007 final adjustment return from the BIR. Emmett Foods then filed a request for
reinvestigation together with the requisite supporting documents on April 25, 2012. On June 2,
2012, the BIR issued a final assessment reducing the amount of the tax demanded. Emmett
Foods was satisfied with the reduction, it did not do anything anymore. On April 15, 2017 the
BIR garnished the corporation's bank deposits to answer for the tax liability. Was the BIR action
proper?
a. Yes. The BIR has 5 years from the filing of the protest within which to collect.
b. Yes. The BIR has 5 years from the issuance of the final assessment within which to
collect
c. No. The taxpayer did not apply for a compromise.
d. No. Without the taxpayer's prior authority, the BIR action violated the Bank Deposit
Secrecy Law.

12. 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?
 a. Within 30 days from receipt of the Commissioner's denial of his application for refund.
b. Within 30 days from receipt of the denial which must not exceed 2 years from payment
of income tax.
c. Within 2 years from payment of the income taxes sought to be refunded.
d. Within 30 days from receipt of the denial or within two years from payment.
13. What is the effect on the tax liability of a taxpayer who does not protest an assessment for
deficiency taxes?
a. The taxpayer may appeal his liability to the CTA since the assessment is a final
decision of the Commissioner on the matter.
b. The BIR could already enforce the collection of the taxpayer's liability if it could secure
authority from the CTA.
c. The taxpayer's liability becomes fixed and subject to collection as the assessment
becomes final and collectible.
d. The taxpayers liability remains suspended for 180 days from the expiration of the period
to protest

14. 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 effected within five
(5) years thereafter.
a. Both statements are correct
b. Both statements are not correct
c. Only the first statement is correct
d. Only the second statement is correct

15. Which Of the following prescriptive period for the B.I.R. to conduct a tax audit is
a. Ten (10) years when no return is filed
b. Ten (10) when return filed is false or fraudulent
c. Three (3) years from actual filing of or from the deadline for filing if the filed is not
fraudulent.
d. All of the above