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In come Taxation (Remedies)
Income Taxation (Our Lady of Fatima University)
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INTAX (REMEDIES)
1. Philippine taxes are assessed by the
government subject to the concurrence of
the taxpayers. FALSE
2. An assessment will not push through
without the approval of the taxpayer. FALSE
3. The government assessment is prima facie
presumed correct and done in good faith.
TRUE
4. Recovering erroneously paid tax is a
government remedy. FALSE
5. The government remedies are assessment
and collection. TRUE
6. The taxpayers remedies include payment of
tax or delaying government collection until
the tax prescribes. FALSE
7. An assessment is a notice of tax deficiency
or delinquency coupled with a demand for
its payment. TRUE
8. To determine the correct tax the
commissioner of internal revenue can
inquire into the balance of bank accounts of
the taxpayers. FALSE
9. The assessment must be made within three
years from the filing of the return. TRUE
10. Unpaid taxes must be collected by the
government within 5 years from the filling
of the tax return or the deadline for such
filling whichever is later. FALSE
11. in collecting axes, the government may
resort to either summary remedies or
judicial action. TRUE
12. The 3 year prescriptive period on
assessment may be extended by fraud done
by the taxpayer in filing his return. TRUE
13. A taxpayer who did not file a return by any
chance, be subjected to an assessment.
FALSE
14. When a return is filed before the deadline,
the prescriptive period of the assessment is
counted from the deadline. TRUE
15. The return may be modified, changed or
amended within 10 years from the date of
its filing as long as the letter of authority
has yet been issued to the taxpayer. FALSE
16. The pre-audit of tax return may lead to and
additional tax liability of the taxpayer. TRUE
17. A revenue officer can issue his own letter of
authority to any taxpayer his effects of
fraudulent tax reporting. FALSE
18. The business operations of taxpayers who
are non-compliant with the basic tax rules
and regulations may be permanently
suspended in closed. FALSE
19. The business operations of tax payers may
resume after their compliance with
requirement and payment of the penalties
due. TRUE
20. The letter of authority is required to be an
electronic copy print out. TRUE
21. the taxpayer can object to an investigation
if he is given a manual letter of authority.
TRUE
22. A tax verification notice is also an authority
for an examination. TRUE
23. A letter notice is an authority for the
examination of a particular taxpayer. FALSE
24. A taxpayer who is issued a letter notice may
also be issued a letter of authority. TRUE
25. The examination of the taxpayer are be
generally conducted in the BIR office so that
the taxpayer cannot interfere with the
independence of the revenue officer. FALSE
26. Taxpayer may be subject to audit
examination more than once a year. FALSE
27. Jeopardy assessment may be issued based
on the best evidence, obtainable rule. TRUE
28. A revenue officer who finds reasonable
basis for the issuance of an assessment
must recommend the issuance of warrant
of distraint or levy. FALSE
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29. A pre-assessment notice is always required
to be given to a taxpayer who will be
assessed. FALSE
30. Assessment must always be coupled by a
demand for the payment of the tax. TRUE
31. The failure of the taxpayer to respond
within 15 days shall result to the issuance of
a final assessment that can no longer be
questioned in court. TRUE
32. A final assessment notice from the BIR can
no longer be questioned. FALSE
33. The failure to file a protest shall make the
assessment final and executory and an
appealable to the court of tax appeals.
TRUE
34. The assessment will become automatically
final and executory on both contested and
uncontested issues if the taxpayer fails to
submit the required supporting documents.
TRUE
35. If the BIR finds merits in the taxpayer's
responses to the preliminary assessment
letter, the impending assessment may be
canceled. TRUE
36. Assessment that which the stage of finality
shall be enforced for collection. TRUE
37. An assessment is always necessary for the
collection of unpaid taxes. FALSE
38. Once the assessment becomes final and
executory, the government cannot be
enjoined from collecting the same. No court
is authorized to suspend the collection of
taxes for whatever reasons. FALSE
39. Payment under protest baby recovered by
the taxpayer. TRUE
40. The commissioner of internal revenue may
not act on the protest within 180
days. TRUE
41. Judicial appeal to the CTA is called a petition
for review on certiorari. TRUE
42. The failure of the taxpayer to state the facts
and the legal basis in support of his protest
on a tax issue shall make the assessment on
such contested issue final, executory, and
demandable. TRUE
43. The collection of tax is enforceable once an
assessment achieves administrative finality.
TRUE
44. The remedies of distraint or levy may be
availed of by the government even in
default of an assessment. FALSE
45. The government may resort to suspension
of business operations to enforce the
collection of taxes. TRUE
46. The final notice before a seizure letter must
be issued before the warrant of distraint or
levy. TRUE
47. The government may pursue judicial action
simultaneously with the distraint and or
levy of a taxpayers property. TRUE
48. The remedies of the taxpayer for judicial
appeal or administrative appeal after the
180-day period are mutually exclusive.
TRUE
49. The claim for refund for erroneously paid
taxes must be filed within two years from
the filing of the return. FALSE
50. A claim for refund is not necessary when a
return is filed showing an overpayment of
tax. TRUE
51. The 3 year prescriptive period will be
extended by any of the following
instances except Fortuitous events
52. In the case of late filing of return, the
prescriptive period for assessment shall be
counted as 3 years from the filing of the
return
53. Which is correct regarding the pre audit of a
tax return? Pre-audit is done to check
mathematical computations or a certain
correctness and validity of deductions
claimed by the taxpayer
54. Letter of authority will not be issued by a
Revenue district officer
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55. As subpoena for the production of
document is a Subpoena duces tecum
56. Which is not a taxpayer protest Request for
settlement by compromise
57. Which of the following will not be involved
during the assessment stage? Preliminary
collection letter
58. Which is not a remedy of the government
to enforce collection of unpaid taxes?
Abatement of the tax liability of the
taxpayer
59. The failure of the taxpayer to make the
installment payment of the tax shall result
in The entire balance be coming due and
demandable immediately
60. Which is not required in an assessment
notice? A statement to the effect that the
taxpayer must dispute the findings of the
examiner
61. Exceptionally, an FLD/FAN may be issued
outright except when the taxpayer
interposed valid defenses
62. To freeze bank accounts and interest, the
government shall issue a Warrant of
garnishment
63. The issuance of an FLD/FAN after protest
has been made by the taxpayer is A denial
of protest
64. An assessment made without the benefit of
a complete or partial audit Jeopardy
assessment
65. In general, the conduct of the audit
investigation of the taxpayer shall not run
over 120 days
66. 66. As a rule, taxpayers shall be subject to
audit Only once a year
67. The taxpayer may be subject to multiple
audits during the year in the following
cases except Request for reconsideration
by the taxpayer which was granted by the
CIR
68. Upon receipt of a preliminary assessment
notice the taxpayer must respond within 15
days
69. The final decision of the CIR may be
administratively disputed by the taxpayer
within 30 days from issuance thereof
70. A taxpayer who concedes to a BIR
assessment must Pay the tax
71. Documents are required to support a
Request for reinvestigation
72. The document must be submitted within 60
days from the submission of the protest
73. A taxpayer's motion for reconsideration
may be acted upon by the BIR within 180
days from the filing of the protest
74. A taxpayer's motion for re-investigation
may be acted upon by the BIR within 180
days from the submission of documents
75. The seizure of personal property is Distraint
76. The seizure of real property is Levy
77. The seizure of interest such as bank
accounts and credits of the taxpayer is
called Garnishment
78. The remedies of distraint/levy can be used
only when the amount of tax Exceeds 100
79. Used to validate the legal claims of the
government to a taxpayer's property Notice
of tax lien
80. Seized properties shall not be sold at a
public auction If the taxpayer settle the
assessment
81. Who shall conduct the distraint of property
when the amount of tax do not exceed 1
million? Revenue district officer
82. Properties of the taxpayer shall be seized in
sufficient quantity to cover the following
costs except Service fee of the BIR
83. Constructive distraint is least likely to be
made on a property of a taxpayer who is
Changing business address with due notice
given to the BIR
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84. Collections must be enforced by the
government within five years from the date
of assessment
85. Which is not required to be included in the
reply to the preliminary assessment notice?
A request for BIR response within 15 days
86. The prescriptive period of assessment and
collection will not be suspended when
the BIR rejects the taxpayer's request for
reinvestigation
87. Which can be compromised? Protested
assessment cases
88. Which cannot be compromised? Delinquent
accounts
with
approve
scheduled
installment payments
89. The CIR may not abate taxes in which of the
following conditions? The taxpayers
offered for a compromise settlement
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