TAX 4

MODULE 2

NOTES IN REMEDIES

INTRODUCTION

1. Stages in the imposition of tax

a. Levy – It is a legislative act which determines that a tax of a certain

amount or of a certain percentage shall be imposed on the persons,
properties or acts.

b. Assessment – It is the official action of an officer authorized by law in

ascertaining the amount of tax due under the law from a taxpayer.

c. Collection – It is the getting by the proper government agency of the

taxes imposed.

Assessment should be made within 3 years from the date of filing of return,
or from the last day required by law for filing, if the return was filed before
such last day.

Collection should be made within 5 years from the date of assessment, either
by summary proceedings or judicial proceedings.

2. Remedies available to the government

a. Administrative remedies

1. Distraint of personal property

2. Levy of real property
3. Enforcement of forfeiture
4. Enforcement of tax lien
5. Entering into compromise of tax cases
6. Constructive distraint

b. Judicial remedies
1. Civil actions
2. Criminal actions

3. Remedies available to the taxpayer

a. Administrative remedies

1. Reinvestigation or reconsideration
2. Compromise
3. Claim for refund

b. Judicial remedies

1. Appeal to Court of Tax Appeals

2. Criminal actions
3. Civil actions

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 REMEDIES IN GENERAL

1. Period of limitation (Statute of limitation)

Assessment

Assessment should be made within 3 years from the date of filing of return,
or from the last day required by law for filing, if the return was filed before
such last day.

No proceeding in court without assessment for the collection of such taxes

shall be begun after the expiration of such period.

Exceptions to 3-year prescriptive period for assessment

1. In case of a false or fraudulent return or of failure to file a return, the tax

may be assessed at any time within 10 years after the discovery of the
falsity, fraud or omission. (False or Fraudulent return; and Failure to file
return)
2. If before the expiration of the 3-year period for the assessment of the
tax, both the Commissioner and the taxpayer have agreed in writing to
its assessment after such time, the tax may be assessed within the
period agreed upon. The period so agreed upon may be extended by
subsequent written agreement made before the expiration of the period
previously agreed upon. (Extension)

Suspension of the running of the Statute of Limitations (Prescriptive period)

on the making of assessment:

1. When the Commissioner is prohibited from making the assessment, or

beginning distraint, or levy or a proceeding in court;
2. When the taxpayer requests for and is granted a reinvestigation by the
Commissioner
3. When the taxpayer could not be located in the address given by him in
the return filed upon which the tax is being assessed or collected
4. When the warrant or distraint and levy is duly served upon the taxpayer
or his authorized representative, and no property could be located
5. When the taxpayer is out of the Philippines

Collection

Collection should be made within 5 years from the date of assessment, either
by summary proceedings or judicial proceedings.

Any internal revenue tax, which has been assessed within the extended
period agreed upon may be collected by distraint or levy or by a proceeding
in court within the period agreed upon in writing before the expiration of the 5
year period. The period so agreed upon may be extended by subsequent
written agreements made before the expiration of the period previously
agreed upon.

Collection without assessment

Collection should be made within 3 years from the date of filing of return, or
from the last day required by law for filing, if the return was filed before such
last day, by judicial proceedings only.

In case of a false or fraudulent return or of failure to file a return, collection

should be made within 10 years from discovery of fraud, falsity or failure to
file a return, by judicial proceedings only.

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2. Authority of the Commissioner to compromise, abate and refund or credit
taxes

The Commissioner may -

a. Compromise the payment of any internal revenue tax, when:

1. A reasonable doubt as to the validity of the claim against the

taxpayer exists; or
2. The financial position of the taxpayer demonstrates a clear inability
to pay the assessed tax.
The compromise settlement of any tax liability shall be subject to the
following minimum amounts:

a. For cases of financial incapacity, a minimum compromise rate

equivalent to ten percent(10%) of the basic assessed tax; and
b. For other cases, a minimum compromise rate equivalent to forty
percent (40%) of the basic assessed tax.

Where the basic tax involved exceeds One million pesos (P1,000.000)
or where the settlement offered is less than the prescribed minimum
rates, the compromise shall be subject to the approval of the Evaluation
Board which shall be composed of the Commissioner and the four (4)
Deputy Commissioners.

Cases which may be compromised:

1. Delinquent accounts;
2. Cases under administrative protest pending in the regional offices,
revenue district offices, legal service, large taxpayer service (LTS),
collection service, enforcement service and other offices in the
national office;
3. Civil tax cases being disputed before the courts;
4. Collection cases filed in courts;
5. Criminal violations, other than those already filed in court or those
involving criminal tax fraud; and
6. Cases covered by pre-assessment notices but taxpayer is not
agreeable to the findings of the audit office as confirmed by the re-
view office.

Cases which cannot be compromised:

1. Withholding tax cases;

2. Criminal tax fraud cases;
3. Criminal violations already filed in court;
4. Delinquent accounts with duly approved schedule of installment
payments;
5. Cases where final reports of reinvestigation or reconsideration
have been issued resulting to reduction in the original assessment
and the taxpayer is agreeable to such decision.
6. Cases which become final and executory after final judgment of a
court.

The prescribed minimum rates for the compromise settlement of tax

liabilities, reckoned on a per tax type assessment basis, are

1. 40% in cases of doubtful validity;

2. 10% in cases of financial incapacity;
3. 50% in cases of delinquent accounts and disputed assessments of
taxpayers registered under the LTS and ETS.

Applications for the compromise settlement of tax liabilities will be

evaluated and approved / disapproved by the:
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 1. National Evaluation Board (for basic assessed tax exceeding P1
million and for offers less than the prescribed minimum rates);

2. Regional Evaluation Board (for basic assessed tax of P500,000.00

or less);

3. Commissioner of Internal Revenue (for basic assessed tax

exceeding P500,000.00 but not over P1 million).

b. Abate or cancel a tax liability, when:

a. The tax or any portion thereof appears to be unjustly or

excessively assessed;
b. The administration and collection costs involved do not justify the
collection of the amount due.

All criminal violations may be compromised except:

a. Those already filed in court, or

b. Those involving fraud

c. Credit or refund taxes erroneously or illegally received or penalties

imposed without authority

No credit or refund of taxes or penalties shall be allowed unless the

taxpayer files in writing with the Commissioner a claim for credit or
refund within two (2) years after the payment of the tax or penalty.

A return filed showing an overpayment shall be considered as a written

claim for credit or refund.

CIVIL REMEDIES FOR COLLECTION OF TAXES

1. Civil remedies for collection of taxes

1. By distraint of personal property or levy on real property

2. By civil or criminal action

2. By distraint of personal property or levy on real property

Distraint is the seizure by the government of personal property, tangible or

intangible, to enforce the payment of taxes, to be followed by its public sale, if
the taxes are not voluntarily paid.

Kinds of distraint:

a. Actual distraint – taking of possession of the personal property out of

the taxpayer
b. Constructive distraint – the owner is merely prohibited from disposing of
his property

Actual distraint vs. Constructive distraint

1. Both are summary remedies for the collection of taxes;

2. Both refer only to personal property;
3. Both cannot be availed of where the amount of the tax involved is not
more than P100

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 4. Actual distraint is made on the property only of a delinquent taxpayer ,
while constructive distraint may be made on the property of any
taxpayer, whether delinquent or not;
5. In actual distraint there is a taking of possession or transfer of control
over the property distrained, while in constructive distraint, the taxpayer
is merely prohibited from disposing of his property;
6. Actual distraint is effected by leaving a list of the property distained or
by service of a warrant of distraint or garnishment, while constructive
distraint, by requiring the taxpayer to sign a receipt of the property or
by the revenue officer preparing and leaving a list of such property; and
7. Actual distraint is an immediate step for collection of delinquent taxes,
while constructive distraint is not necessarily so, its purpose being to
prevent the taxpayer from disposing of his property pending final
determination of his tax liability.

When and by whom distraint may be made:

1. It shall be made not earlier than 3 months nor later than 6 months from
receipt of demand by the taxpayer;
2. The distraint of personal property shall be made by the Commissioner
of Internal Revenue or his duly authorized representative if the amount
involved is more than P1,000,000 or the Revenue District Officer, if the
amount involved is P1,000,000 or less.

Levy - refers to act of seizure of real property in order to enforce the

payment of taxes, and the property may be sold at public sale, if after
seizure, the taxes are not voluntary paid.

Distraint vs Levy

1. Both are summary remedies for the collection of taxes;

2. Both cannot be availed of where the amount of the tax involved is not
more than P100;
3. Distraint refers to personal property, while levy to real property;

4. In distraint of personal property, forfeiture by the government is not

provided, while in the case of levy upon real estate, forfeiture by the
government is authorized where there is no bidder or the highest bid is
not sufficient to pay the taxes, penalties; and
5. The taxpayer is not given the right of redemption with respect to
distrained personal sold, while such right is given in case of real estate
levied upon and sold or forfeited to the government.

Requisites for exercise of remedy of distraint or levy

a. The taxpayer must be delinquent in the payment of tax;

b. There must be subsequent demands for its payments;
c. The taxpayer must fail to pay the delinquent tax at the time required;
and
d. The period within which to assess or collect the tax has not yet
prescribed.

Where constructive distraint is availed of, tax delinquency is not essential.

3. By civil or criminal action

The Bureau of Internal Revenue (BIR) files civil or criminal action before the
Municipal Trial Court, Regional Trial Court or the Court of Tax Appeals with
appropriate jurisdiction.

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 PROTEST OF ASSESSMENT

1. Period of assessment

Assessment is the official action of the Bureau of Internal Revenue in

ascertaining the amount of tax due under the law from a taxpayer.

Assessment should be made within 3 years from the date of filing of return,
or from the last day required by law for filing, if the return was filed before
such last day.

Jeopardy assessment

Jeopardy assessment is a tax assessment which was made without the

benefit of complete or partial audit by an authorized revenue officer who has
reason to believe that the assessment and collection of a deficiency tax will
be jeopardized by delay because of taxpayer’s failure to comply with audit
and investigation requirements to present his books of accounts or to
substantiate all or any of the deductions, exemptions or credits claimed.

2. Procedure prescribed by law

In case of disputed assessment:

1. The BIR notifies the taxpayer through a Pre-Assessment Notice of

findings that proper taxes should be assessed. (Sec. 228)

2. a. The taxpayer responds 15 days from receipt of the Pre-

Assessment Notice why no taxes should be assessed against him.

i. If the BIR accepts the taxpayer’s explanations, then the

proceedings are ended.
ii. If the BIR rejects the taxpayer explanations, the proceedings
are ended, or an assessment issued based on the findings.
(Sec. 228)

b. If the taxpayer fails to respond within 15 days from receipt of the

Pre-Assessment Notice, the BIR ends the proceedings, or an
assessment issued based on the findings. (Sec. 228)

3. The BIR issues the assessment.

4. If the taxpayer does not do anything within 30 days from receipt of the
notice of assessment, the assessment becomes final, executory,
demandable and not appealable to the Court of Tax Appeals, and the
BIR could avail of its remedies to collect the tax.

If the taxpayer administratively protests or disputes the assessment by

filing a request for reconsideration or reinvestigation within 30 days
from receipt of the notice of assessment, within 60 from filing of the
protest, all relevant supporting documents shall be submitted. If the
documents are not seasonably submitted, the assessment shall
become final, executory, demandable and not appealable to the Court
of Tax Appeals.

5. The BIR denies the administrative protest or dispute within 180 days
from receipt of the relevant supporting documents.

The BIR either denies the administrative protest or dispute, or does not
act on the administrative protest or dispute.

6. If the taxpayer receives the BIR’s denial of his administrative protest or

dispute, within 30 days from receipt of the denial appeals the decision
of the BIR to the Court of Tax Appeals – Division.
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 If the taxpayer does not seasonably interpose an appeal, the decision
of the BIR denying his administrative protest or dispute becomes final
and executory. The disputed assessment becomes final, executory,
demandable and not anymore appealable to the Court of Tax Appeals
– Division.

If the taxpayer learns of the inaction by the BIR on his administrative

protest or dispute, within 30 days from the lapse of 180 days from the
taxpayer’s submission of all the relevant supporting documents, must
interpose on appeal to the Court of Tax Appeals-Division.

If a protest filed by a taxpayer be denied by the BIR, the taxpayer may

request the BIR for a reconsideration of such denial and that his tax
case be referred to the BIR’s Appellate Division. The Appellate Division
serves as a "Court", where both parties, i.e. the Revenue Officer on one
hand, and the Taxpayer on the other, can present testimony and
evidence before a Hearing Officer, to support their respective claims.
(Alternative course of action of the taxpayer)

7. The Court of Tax Appeals (CTA) - Division

The decision of the CTA – Division may be appealed to the CTA – en

banc within 15 days.

8. The Court of Tax Appeals (CTA) – en banc

The decision of the CTA – en banc may be appealed to the Supreme

Court within 15 days.

In case of undisputed assessment:

1. The BIR may file an action with the CTA – Division where the principal
amount of taxes and fees, exclusive of charges and penalties, claimed
is P1,000,000.00or more.

The BIR may file an action with the Regional Trial Court or the
Municipal Trial Court, as the case may be, where the principal amount
of taxes and fees, exclusive of charges and penalties, claimed is less
than P1,000,000.00.

2. The decision of the Regional Trial Court in the exercise of its original
jurisdiction or appellate jurisdiction is appealable to the CTA - Division.

3. The decision of the CTA division is appealable to CTA en banc. The

decision of CTA en banc is appealable to the Supreme Court.

JURISDICTION OF THE COURT OF TAX APPEALS

a. Exclusive appellate jurisdiction to review by appeal:

1. Decisions of the Commissioner of Internal Revenue in cases

involving disputed assessments, refunds of internal revenue taxes,
fees or other charges, penalties in relation hereto, or other matters
arising under the National Internal Revenue Code or other laws
administered by the Bureau of internal Revenue;

2. Inaction by the Commissioner of Internal Revenue in cases

involving disputed assessments, refunds of internal revenue taxes,
fees or other charges, penalties in relation thereto, or other
matters arising under the National Internal Revenue Code or other
laws administered by the Bureau of Internal Revenue, where the
National Internal Revenue Code provides for a specific period of
inaction, in which case the inaction shall be deemed a denial.

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 3. Decisions, orders or resolutions of the Regional Trial Courts in
local tax cases originally decided or resolved by them in the
exercise of their original or appellate jurisdiction.

4. Decisions of the Commissioner of Customs in cases involving

liability for customs duties fees or other money charges or other
laws administered by the Bureau of Customs,

5. Decisions of the Central Board of Assessment Appeals in the

exercise of their appellate jurisdiction over cases involving the
assessment and taxation of real property originally decided by the
provincial or city board of assessment appeals.

6. Decisions of the Secretary of Finance on customs cases elevated

to him automatically for review from decisions of the
Commissioner of Customs which are adverse to the Government
under Section 2315 of the Tariff and Customs Code.

7. Decisions of the Secretary of Trade and Industry, in the case of

non-agricultural product, commodity or article, and the Secretary of
Agriculture in the case of agricultural product, commodity or article,
involving dumping and countervailing duties, under the Tariff and
Customs Code, and safeguard measures under RA 8800
(Safeguard Measures Act), where either party may appeal whether
to impose or not to impose the duties.

b. Exclusive original and appellate jurisdiction over cases involving

criminal offenses and collection cases

1. Exclusive original jurisdiction

Criminal offenses arising from violations of the National Internal

Revenue Code or Tariff and Customs Code, and other laws
administered by the Bureau of Internal Revenue or the Bureau of
Customs, where the taxes and fees, exclusive of charges and
penalties, claimed is P1,000,000 or more, and tax collection
cases where the principal amount of taxes and fees, exclusive of
charges and penalties, claimed is P1,000,000.00 or more.

2. Exclusive appellate jurisdiction

a) Over appeals from judgments, resolutions or orders of the

Regional Trial Courts in tax cases (criminal offenses) or tax
collection cases originally decided by them, in their
respective territorial jurisdiction.

b) Over petitions for review from judgments, resolutions or

orders of the Regional Trial Courts in tax cases (criminal
offenses) or tax collection cases in the exercise of their
appellate jurisdiction over cases originally decided by the
Municipal Trial Courts.

- End -

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 EXERCISE
(REMEDIES)

1. The civil remedies for the collection of internal revenue taxes, fees or
charges, and any increment thereto resulting from delinquency shall be the
following, except:

a. By distraint of goods or chattels

b. By levy upon real property and interest in rights to real property
c. By civil or criminal action
d. None of the above

2. If either or both of the following circumstances are present:

A. A reasonable doubt as to the validity of the claim against the taxpayer

exists; or
B. The financial position of the taxpayer demonstrates a clear inability to pay
the assessed tax.

The Commissioner of Internal Revenue may:

Compromise the payment of tax Abate or cancel tax liability

a. Yes Yes
b. No No
c. Yes No
d. No Yes

3. If either or both of the following circumstances are present:

A. The tax or any portion thereof appears to be unjustly or excessively

assessed; or
B. The administration and collection costs involved do
not justify the collection of the amount due.

The Commissioner of Internal Revenue may:

Compromise the payment of tax Abate or cancel tax liability

a. Yes Yes
b. No No
c. Yes No
d. No Yes

4. All criminal violations involving the Tax Reform Act may be compromised.
Which of the following may not?

Already filed in court Involving fraud

a. Yes Yes
b. No No
c. Yes No
d. No Yes

5. Which of the following cases may not be compromised?

a. Delinquent accounts;
b. Civil tax cases being disputed before the courts;
c. Collection cases filed in courts;
d. Cases which become final and executory after final judgment of a court.

6. Which of the following cases may be compromised?

a. Withholding tax cases;

b. Criminal violations already filed in court;
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 c. Cases under administrative protest pending in the regional offices;
d. Delinquent accounts with duly approved schedule of installment
payments.

7. A compromise offer was made by a taxpayer involving a basic assessed tax

of P750,000. The compromise shall be resolved by
a. National Evaluation Board
b. Regional Evaluation Board
c. Commissioner of Internal Revenue
d. Regional Director

8. Which of the following compromise tax liability settlement is allowable under

the law?

a. Compromise amount equal to 10% of the basic tax assessed , where

the basis is the financial incapability of the taxpayer
b. Compromise amount equal to 10% of the basic tax assessed, where the
basis is the doubtful tax assessment
c. Compromise amount equal to 40% of basic tax assessed, where the
basis is the doubtful tax assessment
d. Compromise amount equal to 40% of the basic tax assessed, where the
basis is the fraudulent tax return filed
9. Which statement is correct? In case of an assessment of a tax:

a. A protest should be filed by the taxpayer, otherwise the assessment

becomes final and cannot be questioned anymore in court;
b. A protest may be filed by the taxpayer anytime before the Bureau of
Internal Revenue collects the tax;
c. The assessment should be made by the Bureau of Internal Revenue
within five years from the date of filing of the return;
d. The assessment shall include only the tax proper.
10. Statement 1: A pre-assessment notice shall be required before an
assessment may be made.
Statement 2: The taxpayer shall be informed in writing of the law and the
facts on which the assessment is made, otherwise the assessment shall be
void.
a. First statement is true while second statement is false;
b. First statement is false while second statement is true;
c. Both statements are true;
d. Both statements are false.

11. Statement 1: The taxpayer shall respond to a pre-assessment notice, and if

he fails to respond, an assessment shall be issued.
Statement 2: An assessment issued may be questioned administratively with
the Bureau of Internal Revenue.
a. Both statements are true;
b. Both statements are false;
c. Statement 1 is true while statement 2 is false;
d. Statement 1 is false while statement 2 is true.

12. An assessment shall become final if:

Statement 1: The assessment is not protested administratively if the protest

is not filed with the Bureau of Internal Revenue within thirty days from receipt
of the assessment.
Statement 2: Relevant supporting documents were not presented to the
Bureau of Internal Revenue within sixty days from filing the protest on the
assessment.
a. First statement is true while second statement is false;
b. First statement is false while second statement is true;
c. Both statement are true;
d. Both statement are false.

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13. Which of the following statements is wrong? An appeal on an assessment
may be made to the Court of Tax Appeals:

a. If the Bureau of Internal Revenue denies the protest in whole or in part;

b. If the Bureau of Internal Revenue does not act on the protest within
one hundred eighty days from taxpayer’s submission of documents
supporting his protest;
c. Within thirty days from receipt of the decision of the Bureau of Internal
Revenue on the protest or within thirty days from the lapse of the one
hundred eighty day period ( submission of documents on the protest);
d. None of the above.

14. Which of the following statements is wrong?

a. An assessment which is not protested and appealed to the Court of Tax

Appeals becomes final, executory and demandable;
b. The proceedings on the protest in the Bureau of Internal Revenue is an
administrative proceedings;
c. The proceedings in the Court of Tax Appeals is a judicial proceeding;
d. The proceedings in the Court of Tax Appeals is a quasi-judicial
proceedings.

15. Which of the following is the correct prescription period for tax assessment?

a. Within 3 years after the correct tax return is filed

b. Within 3 years after the discovery of failure to file a tax return
c. Within 10 years after the correct tax return is filed
d. Within 10 years from the prescribed date of filing of the tax return

16. When could levy of real property as a civil tax collection remedy be done?

a. Before distraint proceeding

b. After distraint proceeding
c. Simultaneously with the distraint proceeding
d. All of the above

17. Distraint proceeding as a tax collection remedy could be carried out by the
Revenue District Office when the pertaining tax liability is

a. Not more than P1,000,000 c. Not more than P10,000,000

b. Not more than P1,500,000 d. Not more than P15,000,000

18. A tax collection remedy where the Commissioner informs the Register of
Deeds so that the real properties of the delinquent taxpayer could not be
transacted or transferred until the tax liabilities are fully paid is

a. Levy c. Tax lien

b. Distraint d. Forfeiture

19. If taxes are not voluntarily paid by the taxpayer, the seizure by the
government of personal property to enforce tax payments followed by the its
public sale pertains to

a. Distraint c. Forfeiture
b. Levy d. confiscation

20. Which tax administration aspect refers to the taking of a delinquent

taxpayer’s property in favor of the government?

a. Assessment c. Expropriation
b. Forfeiture d. Compromise settlement

21. A collection remedy which involves the seizure by the government of

personal property of the defaulting taxpayer, to be followed by its public
auction sale if the taxes are not voluntarily paid is

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 a. Confiscation c. Forfeiture
b. Distraint d. Levy

22. In case the warrant of levy on real property is not issued before or
simultaneously with the warrant of distraint on personal property, and
personal property of the taxpayer is not sufficient to satisfy his tax
delinquency, the Commissioner or his duly authorized representative shall
within

a. 30 days after execution of the distraint, proceed with the levy on the
taxpayer’s real property.
b. 60 days after execution of the distraint, proceed with the levy on the
taxpayer’s real property.
c. 30 days after execution of the distraint, proceed with the levy and
distraint of the taxpayer’s real property.
d. 60 days after execution of the distraint, proceed with the levy and
distraint of the taxpayer’s real property.

23. The following are requisites for exercise of remedy of distraint or levy. Which
is the exception?

a. The taxpayer must be delinquent in the payment of tax;

b. There must be subsequent demands for its payments;
c. The taxpayer must fail to pay the delinquent tax at the time required;
and
d. The period within which to assess or collect the tax has prescribed.

24. After the taxpayer has filed a protest of assessment within the reglamentary
period, he has to submit supporting documents within

a. 30 days from filing of protest of assessment;

b. 60 days from filing of protest of assessment;
c. 30 days from receipt of notice of assessment;
d. 60 days from receipt of notice of assessment;

25. Which statement is wrong?

a. Stocks and securities shall be distrained by serving a copy of the

warrant of distraint upon the taxpayer and upon the president, manager,
treasurer or other responsible officer of the corporation, company or
association which issued said stocks or securities;
b. Debts and credits shall be distrained by leaving with the person owing
the debts or having in his possession or control such credits a copy of
the warrant of distraint;
c. Bank accounts are garnished by serving a warrant of garnishment upon
the taxpayer and upon the president, manager, treasurer or other
responsible officer of the bank;
d. None of the above.

26. Statement 1: If the taxpayer does not do anything within 30 days from
receipt of the notice of assessment, the assessment becomes final,
executory.
Statement 2: If the taxpayer receives the BIR’s denial of his administrative
protest or dispute, the taxpayer should appeal the decision to the Court of
Tax Appeals within 30 days from receipt of the denial.

a. Only statement 1 is correct; c. Both statements are correct;

b. Only statement 2 is correct; d. Both statements are wrong.

27. The decision of the CTA en banc is appealable to

a. The Court of Appeals

b. The Secretary of Finance
c. The Commissioner of Internal Revenue
d. The Supreme Court

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28. The Commissioner of Internal Revenue plans to avail of judicial remedy for
collection of tax liability of a taxpayer amounting to P1,500,000. Where will
the Commissioner file the collection case?

a. Municipal Trial Court c. Court of Tax Appeals

b. Regional Trial Court d. Court of Appeals

29. The Court of Tax Appeals is composed of

a. A presiding justice and eight associate justices;

b. A presiding judge and eight associate judges;
c. A presiding justice and eight associate justices;
d. A chief justice and eight associate justices.

30. Assessment received – January 5, 2020; Petition for reconsideration filed

with the Bureau of Internal Revenue – February 1, 2020; Documents
supporting the petition filed by the taxpayer – February 7, 2020. Decision of
the Bureau of Internal Revenue denying the petition was received – March
22, 2020; Second request for reconsideration filed with the Bureau of Internal
Revenue – March 30, 2020; Decision of denial of second request for
reconsideration was received – April 12, 2020; Last day to appeal to the
Court of Tax Appeals:

a. May 12, 2020 c. May 4, 2020

b. July 4, 2020 d. None of the these

31. Date assessment was received – January 2, 2020. Petition for

reconsideration was filed with the Bureau of Internal Revenue – January 12,
2020. Documents supporting the petition for reconsideration was filed with
the Bureau of Internal Revenue – January 22, 2020. No decision on the
protest by July 12, 2020. Last day to appeal to the Court to Tax Appeals:

a. July 21, 2020;

b. August 20, 2020;
c. No more appeal, as the period to appeal had elapsed;
d. None of the above.

32. Date assessment was received – February 8, 2020; Petition for

reconsideration was filed with the Bureau of Internal Revenue on February
18, 2020. Documents supporting the petition were filed with the Bureau of
Internal Revenue on February 28, 2020. Decision of denial of the petition
was received on March 11, 2020. Second request for reconsideration was
filed with the Bureau of Internal Revenue on March 21, 2020. Date revised
assessment was received was April 2, 2020. Last day to appeal to the Court
of Tax Appeals:

a. April 22, 2020 c. May 3, 2020

b. May 2, 2020 d. None of the these

33. Statement 1: A claim for refund for tax erroneously paid must be made by
the taxpayer within 2 years from the date of payment.
Statement 2: In case of denial by the Bureau of Internal Revenue of claim for
refund for tax erroneously paid, the taxpayer has 30 days to appeal to the
Court of Tax Appeals, and in no case shall the appeal period go beyond 2
years from the date of payment.

a. Statement 1 is correct, but statement 2 is wrong;

b. Statement 1 is wrong, but statement 2 is correct;
c. Both statements are correct;
d. Both statements are wrong.

34. Date the national internal revenue tax erroneously paid – January 5, 2019;
Date a claim for refund was filed with the Bureau of Internal Revenue –
February 6, 2020; Date decision of denial by the Bureau of Internal Revenue
was received – October 28, 2020. Last day to appeal to the Court of Tax
Appeals:

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 a. February 6, 2021 c. December 27, 2020
b. January 5, 2021 d. November 27, 2020

35. Date the national internal revenue tax was paid – April 10, 2018. Claim for
refund was filed with the Bureau of Internal Revenue – March 10, 2019. Date
decision of denial of refund was received – March 21, 2020. Last day to
appeal to the Court of Tax Appeals:

a. April 20, 2020 c. April 21, 2020

b. April 10, 2020 d. None of these.

36. Statement 1: If before the expiration of the time prescribed for the
assessment of the tax, both the Commissioner and the taxpayer have agreed
in writing to its assessment after such time, the tax may be assessed within
the period of extension agreed upon.
Statement 2: Under the doctrine of equitable recoupment, a liability for tax
the collection of which has not prescribed may be offset against a refund of
another tax the refund of which has prescribed. Conversely, a liability for a
tax the collection for which has prescribed may be offset against a refund of
another tax the refund for which has not yet prescribed. This American
jurisprudence can very well apply in the Philippines.

a. True; True c. True; False

b. False; False d. False; True

37. Statement 1: No court shall have the authority to grant an injunction to

restrain the collection of any national internal revenue tax, fee or charge
imposed by the National Internal Revenue Code.
Statement 2: Judicial proceedings for the collection of an internal revenue
tax may be instituted even without a prior assessment of the tax on the
taxpayer.

a. True; True c. True; False

b. False; False d. False; True

38. Statement 1: A refund check or warrant which shall remain unclaimed or

uncashed within five years from the date said warrant or check was mailed
or delivered shall be forfeited in favor of the Government;
Statement 2: A tax credit certificate which shall remain unutilized after five
years from the date of issue shall, unless revalidated, be considered invalid
and shall not be allowed as payment of any internal revenue liabilities of the
taxpayer.

a. True; True c. True; False

b. False; False d. False; True

39. Statement 1: A tax lien attaches to all the property and property rights of a
taxpayer only from the time when the assessment was made by the Bureau
of Internal Revenue for the unpaid tax, with interest, penalties and costs.
Statement 2: A tax lien shall not be valid against any mortgagee, purchaser
or judgment creditor until notice of such lien shall be filed in the office of the
register of Deeds of the province or city where the property is situated or
located.

a. True; True c. True; False

b. False; False d. False; True

40. Statement 1: A substantial underdeclaration of taxable sales, receipts or

income or a substantial overstatement of deductions shall constitute prima
facie evidence of a false or fraudulent return.
Statement 2: A return, statement or declaration filed with the Bureau of
Internal Revenue may not anymore be modified, changed or amended.

a. True; True c. True; False

b. False; False d. False; True

- End -
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