FINAL EXAM
1. Mr. BaraBara Mrum filed his candidacy for President of the Philippines. Lina
Inverse filed a petition for disqualification against BaraBara Mrum on the grounds
that he was previously convicted for failure to file his Income Tax Returns.
COMELEC ordered both BaraBara Mrum and Lina Inverse to file a position paper.
a. Prepare a brief position paper for BaraBara Mrum. 10%
b. Prepare a brief position paper for Lina Inverse. 10%
c. If you a COMELEC Commissioner, how would you resolve the petition? 10%
2. The Regional Director of BIR RR 100 issued Final Assessment Notice ordering ABC
Corp. to pay the amount of P12,000,000.00 exclusive of delinquency interest. ABC
Corp. timely filed a protest but the Regional Director sustain his decision and
issued a Final Decision on Disputed Assessment. ABC Corp. timely filed a request
for reconsideration before the Office of the Commissioner of Internal Revenue.
While the request for reconsideration is pending for resolution before the Office of
the Commissioner, the Regional Director issued a Warrant of Distraint and Levy
WDL, garnishing the bank deposit of ABC Corp in BPI. ABC Corp ordered BPI to
ignore the WDL and await the resolution of their request for reconsideration by
the CIR. The President of BPI ask you as tax counsel for a legal opinion. Prepare
a legal opinion address to the President of BPI. 20%
3. The Revenue District Officer of BIR District Office No. 770 issued a Discrepancy
Notice informing XYZ Corp. of its value-added tax deficiency in the aggregate
amount of P12,000,000.00. The Discrepancy Notice is predicated on a Letter of
Authority and data involving undeclared sale to DEF Corp. in the amount of
P100,000,000.00. XYZ Corp. filed a letter with attached sworn declaration from
the President of DEF Corp. averring that the bookkeeper of DEF Corp committed
an error in reporting the said P100,000,000.00 as purchases from XYZ Corp. It
should have been recorded as purchases from GHI Corp. The RDO recommended
for the issuance of Preliminary Assessment Notice (PAN) without resolving the
factual concern raised by XYZ Corp. If you are the Regional Director, will you
issue the PAN or return the case to the Revenue District Office? 20%
4. Miss Julia Bernardo is a movie actress and a talent of Sun Cinema Production. A
Letter of Authority was issued for the investigation of her tax compliance for
taxable year 2019. Miss Bernardo declared her gross Income in the amount of
P5,000,000.00 in her ITR, however, BIR investigators discovered that she failed to
declare her income from several of her movies and modeling activities in the
aggregate amount of P100,000,000.00. A criminal complaint was initiated by the
BIR before the Department of Justice for attempt to evade or defeat income tax
and willful failure to supply correct an accurate information in her income tax
return for taxable year 2019. DOJ found probable cause and filed information on
both charges against Miss Bernardo before the CTA. During trial, the Prosecution
has proven the there is an undeclared income in the amount of P100,000,000. Miss
Bernardo’s counsel has proven to the court the Miss Bernardo’s educational
attainment was only in Grade 3; That she is very poor in Math. That Miss Bernardo
relied solely to her accountant and just sign her 2019 ITR without understanding
a word or figure on it. If you are the Justice of the CTA, how will you decide on
this case. 20%
5. The BIR issued a Mission Order for the surveillance of XYZ Sari-Sari Store for the
period from January 10, to January 30, 2020. During the surveillance BIR
Investigators found out that XYZ Sari-Sari Store is not issuing sales invoice. That
there is an estimated VAT deficiency in the amount of P4,000,,000.00 inclusive of
increments. To minimize his VAT deficiency, Mr. X, the owner of XYZ Sari-Sari
Store decided to amend his VAT Returns for the four Quarters of 2020.
A. Can Mr. X amend his VAT returns for the four Quarters of 2020? 5%
B. In case Mr. X failed to pay his VAT deficiency in the amount of P4,000,000.00.
can the BIR garnished his cash in bank? 5%