XBUSTAX

Name:_______________________________ Date:____________________________
Section:______________________________ Remedies

1. This is not an administrative remedy available to a taxpayer in connection with collection of taxes
a. Filing a petition for reconsideration or reinvestigation
b. Filing a claim for tax refund or credit
c. Entering into a compromise
d. Filing a criminal complaint against erring BIR officials or employees

2. Where compromise penalties are not allowed

a. Failure to preserve or keep books of accounts and accounting records.
b. Failure to keep books of accounts or records in a native language or in English.
c. Failure to have books of accounts audited and have financial statements attached to income tax return
certified by an independent CPA.
d. Keeping two (2) sets of books of accounts or records.

3. All criminal violations may be compromised:

A) Except those already filed in court B)Except those involving fraud
a. True, true b. True, false c. False, true d. False, false

4. A compromise for a tax liability on the ground of financial incapacity to pay shall still involve a payment
of tax from the taxpayer at a minimum compromise rate of
a. 10% of the basic assessed tax c. 30% of the basic assessed tax
b. 20% of the basic assessed tax d. 40% of the basic assessed tax

5. Using the preceding number, with regard to compromises other than on the ground of financial incapacity
to pay, the compromise shall involve a minimum compromise rate of
a. 10% of the basic assessed tax c. 30% of the basic assessed tax
b. 20% of the basic assessed tax d. 40% of the basic assessed tax

6. A – The CIR may refund a tax even without a claim for refund from the taxpayer where, on the face of the
return upon which the payment was made, such payment clearly appears to have been erroneously made.
B – When 2 years are about to expire from the date of payment and no decision has yet been received by
the taxpayer on his claim for refund filed with the BIR, the taxpayer may appeal to the CTA even without
waiting for the decision of the BIR on his claim for refund.

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

7. A – The CIR is authorized to inquire into the bank deposit of a taxpayer who has filed an application for
compromise of his tax liability by reason of financial incapacity to pay.
B – The CIR is authorized to look into the bank deposit of a decedent to determine his gross estate.
a. True, true b. True, false c. False, true d. False, false

8. 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

9. 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

10. An appeal on an assessment may be made to the CTA if the BIR does not act on the protest within how
many days from the taxpayer’s submission of documents supporting his protest?
a. 30 days b. 60 days c. 90 days d. 180 days

11. The taxpayer shall respond to a PAN, and if he fails to respond, a FAN shall be issued.
An assessment issued may be questioned administratively with the BIR.
a. True, true b. True, false c. False, true d. False, false
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12. 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. 3 years b. 5 years c. 7 years d. 10 years

13. Where any national internal revenue tax is alleged to have been erroneously or illegally collected, as a
remedy, the taxpayer should first file an action for refund with the
a. Regional Trial Court b. Court of Tax Appeals c. BIR d. Court of Appeals

14. 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 anytime before the BIR collects the tax.

15. Date of payment of tax erroneously paid April 15, 2017

Date a claim for refund was filed January 15, 2018
Date decision of denial by the BIR was received September 15, 2018
Last day to appeal to the CTA is
a. April 15, 2019 b. January 15, 2019 c. November 15, 2018 d. October 15, 2018

16. Using the preceding number, if the date of decision of denial by the BIR was received on March 31, 2019,
the last day to appeal to the CTA is
a. April 30, 2019 b. April 15, 2019 c. March 31, 2020 d. May 30, 2020

17. 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 b. November 8, 2018 c. December 8, 2018 d. October 28, 2018

18. Date assessment was received March 8, 2018

Date petition for reinvestigation was filed with the BIR March 28, 2018
Date of filing of documents to support the petition May 8, 2018
No decision on the protest is received as of October 30, 2018
The last day to appeal to the CTA is
a. April 15, 2019 b. November 8, 2018 c. December 4, 2018 d. November 30, 2018

19. Date assessment was received March 8, 2018

Date petition for reinvestigation was filed with the BIR March 28, 2018
Date of filing of documents to support the petition May 8, 2018
Date decision of denial by the BIR was received June 10, 2018
Date petition for reconsideration was filed with the BIR June 18, 2018
Date decision of denial of the petition for reconsideration was received June 28, 2018
The last day to appeal to the CTA is
a. July 28, 2018 b. July 20, 2018 c. July 10, 2018 d. July 18, 2018

20. Using No. 36 above, except that the BIR issued an amended decision on the petition for reconsideration,
and the amended decision was received on June 28, 2018.
The last day to appeal to the CTA is
a. July 28, 2018 b. July 20, 2018 c. July 10, 2018 d. July 18, 2018

21. 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.
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 d. The assessment shall include only the tax proper.

22. 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.

23. The following are grounds to cancel a tax liability by the Commissioner, except
a. The tax is unjustly or excessively assessed
b. The administration and collection costs involved do not justify the collection of the amount
c. A reasonable doubt as to the validity of the claim against the taxpayer
d. Illegal collection of tax

24. Which of the following is not a requisite to toll the collection of taxes to be made by the BIR, upon proof
of the following to the Court of Tax Appeals
a. It will jeopardize the interest of the taxpayer.
b. It will jeopardize the interest of the government.
c. Filing of a bond for at least double the amount of the tax assessed.
d. The case is not dilatory.

25. 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 distrait and levy or a
proceeding in court and for thirty (30) days thereafter
b. When the taxpayer requests for a 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

26. The power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges,
penalties imposed in relation thereto, or other matters arising under the Tax Code or other laws
administered by the BIR is vested with
a. The Commissioner of the BIR c. The Court of Tax Appeals
b. The Secretary of Finance d. The Regular Courts

27. 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 investigation b. Tax audit c. Tax assessments d. Tax mapping

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

29. The Commissioner of BIR may compromise any internal revenue tax in the following instances, except:
a. A reasonable doubt as to the validity of the claim against the taxpayer exists
b. The financial position of the taxpayer demonstrates a clear inability to pay the assessed tax
c. The tax or any portion thereof appears to be unjustly or excessively assessed
d. The taxpayer has been granted by the SEC or by any competent tribunal a moratorium or suspension
of payments to creditors, or otherwise declared bankrupt or insolvent

30. The income tax return of Mr. A for 2013 was filed on April 10, 2014. The tax per return was P3,000 but
tax audit by the BIR was P5,000. An assessment for deficiency tax was made on April 15, 2017.
Required:
a. Was the assessment made on time?
b. If the assessment was made on April 20, 2017, what is the defense of the taxpayer?
c. Suppose the BIR discovered on December 1, 2025 that the taxpayer filed a fraudulent return, and the
assessment was made on April 20, 2033. Is the assessment valid?
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 d. Suppose no return was filed and the failure to file the return was known to the BIR on December 1,
2023. Within what time may the BIR make an assessment?

31. The powers of the Commissioner of Internal Revenue include the following except:
a. Abate a tax liability of a taxpayer
b. Compromise the payment of any internal revenue tax
c. Credit or refund a tax that has been erroneously paid by the taxpayer
d. Inquire into bank deposits of a taxpayer

From CPAR handout

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