No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

Remedies and Increments Tax03-14

1. Statement 1 - The Commissioner of Internal Revenue (CIR) or his duly

authorized representative may authorize the examination of any taxpayer and the
assessment of the correct amount of all taxes, notwithstanding any law requiring
the prior authorization of any government agency or instrumentality.
Statement 2 – The CIR shall have the Authority to Compromise, Abate, and Refund
or Credit internal revenue taxes.

a. True, True
b. True, False
c. False, False
d. False, True

2. Statement 1 - As a general rule, the prescriptive period of assessment of internal

revenue taxes shall be assessed within three (3) years after the last day
prescribed by law for the filing of the return, or where the return is filed within the
period, from the day the return was actually filed.
Statement 2 – In case of false, fraudulent and failure to file a return, a 10 year
prescriptive period, which starts to run from the discovery of the falsity, fraud or
failure to file a return, shall apply.
a. True, True
b. True, False
c. False, False
d. False, True

3. Deedees Merchandising Incorporated filed its 2019 income tax return on March
30, 2020. The last day for the BIR to issue to Deedees the Final Assessment
Notice is
a. April 15,2023
b. May 30, 2023
c. May 30, 2029
d. April 15, 2030

4. A false return was filed on April 15, 1990 and the falsity was only discovered on
May 8, 1991. When is the last day for the BIR to issue the Final Assessment
Notice
a. April 15, 1993
b. April 15, 2003
c. May 8, 1994
d. May 8, 2001

5. Statement 1 – False return implies any deviation from truth, whether intentional
or not
Statement 2 – Fraudulent return with intent to evade tax implies intentional
deceitful entry with intent to evade tax.
a. True, True
b. True, False
c. False, False
d. False, True

6. Statement 1 – Filing of an amended return extends the prescriptive period of

assessment in all cases.
Statement 2 - If amended return is substantially different from the original return,
the prescriptive period is counted from the filing of the amended return.

1|P a g e AESCARTIN/TLOPEZ/JPAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

a. True, True
b. True, False
c. False, False
d. False, True

7. One of the following is an amendment which is substantially different from the

original return filed.
a. The amended return revised the number of pages of the attachment from the
original
b. The change in the amount of the minimum corporate income tax reflected in
the amended return when the regular corporate income remain to be paid as
in the original.
c. Change in the date of submission of the amended tax return
d. Change in the claimed itemized deductions which reduced the amount of tax
due by 2.7% compared to the original return filed.

8. The following defect on the Letter of Authority (LOA) shall invalidate the assessment
made, except.
a. LOA covering the year ended December 31, 1989 and unverified prior years
b. Tax fraud cases covering two taxable years
c. LOA served to the taxpayer within thirty (30) days from issuance.
d. Revenue Officer (RO) who issued the report is not the same RO indicated in
the LOA.

9. Statement 1 – the informal conference shall in no case extend beyond 30 days from
receipt of the notice of informal conference (NIC).
Statement 2 – the Notice of Discrepancy (ND) requires the submission of documents
during the discussion within thirty (30) days from receipt of the ND.
a. True, True
b. True, False
c. False, False
d. False, True

10. Statement 1 - The Preliminary Assessment Notice (PAN) is the notice issued by the
Assessment Division, after the ND, informing the taxpayer of the BIR’s initial
findings during the RO’s investigation.
Statement 2 - The PAN includes the computational details of the findings together
with the facts and bases in law and rules and regulations on how the BIR founded its
items of assessment.
a. True, True
b. True, False
c. False, False
d. False, True

11. A PAN shall not be required in any of the following cases, except
a. When the finding for any deficiency tax is the result of mathematical error in
the computation of the tax appearing on the face of the tax return filed by the
taxpayer;
b. When a discrepancy has been determined between the tax withheld and the
amount actually remitted by the withholding agent;
c. When a taxpayer who opted to claim a refund or tax credit of excess
creditable withholding tax for a taxable period was determined to have carried
over and automatically applied the same amount claimed against the
estimated tax liabilities for the taxable quarter or quarters of the succeeding
taxable year;
d. When the value-added tax due on excisable articles has not been paid;

2|P a g e AESCARTIN/TLOPEZ/JPAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

e. When an article locally purchased or imported by an exempt person, such as, but
not limited to vehicles, capital equipment, machineries and spare parts, has been
sold, traded, or transferred to non-exempt persons.

12. Statement 1 - A Final Assessment Notice (FAN) issued on the 30th day from receipt
of the PAN by the taxpayer is a valid issuance of the FAN.
Statement 2 - A Final Assessment Notice (FAN) issued on the 15 th day from receipt
of the PAN by the taxpayer is a valid issuance of the FAN.
a. True, True
b. True, False
c. False, False
d. False, True

13. Statement 1 - Taxpayer is given 30 days to submit its protest discussing its
contention on the findings and provide reconciliation schedules and supporting
documents to its arguments. Otherwise, the assessment becomes final and
executory.
Statement 2 - The case is forwarded to the Assessment Division for review and
issuance of the Final Decision on Disputed Assessment (FDDA).
a. True, True
b. True, False
c. False, False
d. False, True

14. The assessment becomes final and executory, due and collectible, except:
a. Taxpayer failed to protest the Final Assessment Notice (FAN)
b. Taxpayer failed to protest the Final Decision on Disputed Assessment
(FDDA) to the: Commissioner of Internal Revenue; or to the Court of Tax
Appeals
c. Taxpayer failed to appeal the unfavorable decision of the CTA
d. Taxpayer failed to submit its reply against the PAN

15. The prescriptive period of collection is 5 years from the issuance of a valid
assessment, except:
a. When the taxpayer submits a protest requesting for reinvestigation
b. When the BIR does not issue Final Decision on Disputed Assessment within
5 years from issuance of the FAN.
c. When a suspension order is issued by the Court of Tax Appeals.
d. When the taxpayer settled the amount due on the day indicated on the FDDA.

16. The following are civil remedies of administrative collection available to the BIR,
except:
a. Levy
b. Garnish
c. Distraint
d. Filing a tax evasion case against the taxpayer.

17. Which of the following statements is not true. “The Final Notice Before Seizure is:
a. Not considered as a denial of request for reconsideration of the disputed
assessment.
b. deemed as the taxpayer's last act, since failure to comply with it would lead
to the distraint and levy of the taxpayer's properties.
c. Not only was the FNBS the only response received, its content and tenor
supported the theory that it was the CIR's final act regarding the request for
reconsideration.

3|P a g e AESCARTIN/TLOPEZ/JPAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

d. The taxpayer was being given "this LAST OPPORTUNITY" to pay;

otherwise, its properties would be subjected to distraint and levy.

18. The following are true as regards the power of the CIR to enter into a compromise
agreement with a taxpayer, except
a. It is based on a reasonable doubt as to the validity of the claim against the
taxpayer
b. It is based on the financial incapacity of the taxpayer to pay the assessed tax
c. All criminal violations may be compromised except those already filed in
court and those involving fraud
d. The tax or any portion thereof appear to be unjustly or excessively assessed.

19. The following can be abated, except

a. Surcharge
b. Interest
c. Compromise penalty
d. Assessments which are void ab initio

20. The following are increments on the basic deficiency tax, except
a. Deficiency interest
b. Surcharge
c. Compromise penalty
d. Basic tax deficiency

21. Income tax return for the year ended December 31, 2019 was due for filing on April
15, 2020. The taxpayer voluntarily filed his tax return on July 15, 2020 whereby the
basic tax due is P100,000. The total amount due on July 15, 2020, excluding
compromise penalty.
a. P128,000
b. P194,930
c. 165,000
d. P125,000

22. Income tax return for the year ended December 31, 2019 was due for filing on April
15, 2020. The Taxpayer erred in identifying his Revenue District Office. Thus, his tax
return was filed to a different RDO. The total amount due on July 15, 2020,
excluding compromise penalty.
a. P128,000
b. P194,930
c. P165,000
d. P125,000

23. Income tax return for the year ended December 31, 2019 was due for filing on April
15, 2020. The Taxpayer failed to file his ITR on said date whereby the basic tax due
was P100,000. He received notice from the BIR to file his tax return. He was able to
lodge his tax return only on July 15, 2021. The total amount due on July 15, 2021,
excluding compromise penalty
a. P128,000
b. P194,930
c. P165,000
d. P125,000

24. The taxpayer timely filed his tax return on April 15, 2020. After tax investigation, the
taxpayer received an assessment for a deficiency income tax of P100,000. The final
letter of demand required him to pay on October 15, 2021. He was only able to pay

4|P a g e AESCARTIN/TLOPEZ/JPAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

on November 15, 2021. The Total Amount due on November 15, 2021 assuming a
compromise penalty of P50,000.
a. P128,000
b. P194,930
c. P165,000
d. P125,000

25. A taxpayer disclosed to you the following information:

Date of filing the Income Tax Return: Mar. 28, 2018
Date assessment was received: June 20, 2020
Request for reinvestigation was filed: July 4, 2020

The last day for the taxpayer to submit relevant supporting documents is
a. September 4, 2020
b. September 2, 2020
c. July 20, 2020
d. April 15, 2020

26. Based on number 25 , assuming that the taxpayer submitted the documents
supporting his motion on August 31, 2020. The taxpayer shall have the option to
appeal the inaction of the Commissioner of Internal Revenue to the Court of Tax
Appeals (CTA) beginning on
a. September 26, 2020
b. February 27, 2021
c. April 15, 2020
d. February 14, 2021

27. A taxpayer disclosed the following information:

Date of filing 2016 ITR May 12, 2017
Received assessment of October 10, 2018
deficiency income tax
Protest was filed October 30, 2018
Submission of supporting documents December 5, 2018
Received denial of protest April 20, 2019

The last day to appeal the decision of the BIR to the Court of Tax Appeals is
a.June 4, 2019
b. May 5, 2019
c. May 20, 2019
d. June 20, 2019

28. Mang Ben filed an income tax return for the calendar year 2016 on March 10, 2017.
The BIR issued a Formal Letter of Demand/Final Assessment Notice on April 10,
2020 which has become final, executory and demandable. When is the last day for
the BIR to collect?
a. April 10, 2019
b. April 15, 2018
c. April 10, 2025
d. March 10, 2019

29. Mr. Ben Torino, filed his annual income tax return, for the year ended December 31
2019 on April 10, 2020. His annual income tax is Ph1,800,000 with creditable
income tax amounting to P1,650,000. How much is the maximum amount Mr.
Torino can defer assuming he chose to pay his amount due using the installment
method of payment of individual income tax.

5|P a g e AESCARTIN/TLOPEZ/JPAPA
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

a. P900,000
b. P150,000
c. P100,000
d. P1,650,000

30. Based on number 29, the second installment of Mr. Torino is due not later than:
a. July 15, 2020
b. October 15, 2020
c. December 31, 2020
d. November 8, 2020

That in all things God will be glorified

6|P a g e AESCARTIN/TLOPEZ/JPAPA

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