Tax Quiz on Special Topics - for fourth year students

Tax quiz on special topics on taxation

1. QUIZ 1 Special Topics in Taxation

2. 1. Multiple choice _______________ is an official document that empowers a Revenue Officer to examine and scrutinize a taxpayer's books of accounts and other accounting records, in order to determine the taxpayer's correct internal revenue tax liabilities. a. Letter of Authority (LOA) b. Letter Notice (LN) c. Preliminary assessment notice (PAN) d. Final assessment notice (FAN)

3. 2. Multiple choice Statement 1: The Bureau of Internal Revenue (BIR) must issue an LOA prior to issuing a PAN, FAN or FDDA. Statement 2. Absence of a Letter of Authority makes the assessment unauthorized and thus, void. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect

4. 3. Multiple choice is issued if after review and evaluation by the Commissioner or his duly authorized representative, as the case may be, it is determined that there exists sufficient basis to assess the taxpayer for any deficiency tax or taxes. a. Preliminary assessment notice (PAN) b. Final assessment notice (FAN) c. Final letter of demand (FLD) d. Final decision on a disputed assessment (FDDA)

5. 4. Multiple choice As a rule, PAN is issued to a taxpayer as the first step in assessment, It serves as notice that the taxpayer still has some taxes due. PAN is issued when: а. The taxpayer fails to file a return b. The taxpayer files a return but fails to pay the tax c. The taxpayer pays the tax but the same is insufficient d All of the above

6. 5. Multiple choice Preliminary assessment notice is not required in the following cases, except: a. Tax deficiency is due to mathematical error b. Tax deficiency is due to unpaid VAT c. Tax deficiency is due to unpaid excise taxes d. Tax deficiency is due to withholding tax

7. 6. Multiple choice A written notice and demand by the BIR on the taxpayer for the settlement of a due tax liability that is there definitely set and fixed- a. Assessment b. Forfeiture c. Audit engagement letter d. Institution of criminal action

8. 7. Multiple choice A pre-assessment notice is required a. When a discrepancy has been determined between the amount of sales declared and the purchases recorded by the seller’s customers. b. When a discrepancy has been determined between the tax withheld and the amount actually remitted by the withholding agent. c. When an article locally purchased or imported by an exempt person has been sold, traded or transferred to non-exempt persons. d. When the deficiency tax is the result of mathematical errors in the computations appearing on the face of the return.

9. 8. Multiple choice Statement 1: The formal letter of demand (FLD)/final assessment notice (FAN) shall be issued by the Commissioner or his duly authorized representative. Statement 2: The FLD/FAN calling for payment of the taxpayer's deficiency tax or taxes shall state the facts, the law, rules and regulations, or jurisprudence on which the assessment is based; otherwise, the assessment shall be void. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect

10. 9. Multiple choice 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. Three years b. Five years c. Ten years d. Answer not given

11. 10. Multiple choice Allan filed his ITR for 2018 on October 15, 2019. The last day for BIR to assess is on? a. October 15, 2024 b. April 15, 2022 c. October 15. 2022 d. October 14, 2022

12. 11. Multiple choice Donor's tax return for a donation made on January 15, 2018 was filed on January 31, 2018 Last day for BIR to assess is on? a. February 15, 2021 b. January 31, 2021 c. February 14, 2021 d. January 15, 2021

13. 12. Multiple choice Based on the preceding number, but assume the return filed was fraudulent and was discovered on March 31, 2018. The last day for BIR to assess is on? a. February 15, 2028 c. February 14, 2028 b. January 31, 2028 d. March 31, 2028

14. 13. Multiple choice If the taxpayer did not file a return, what is the prescriptive period for the issuance of Final Assessment Notice? a. Three (3) years counted from the time of filing or deadline whichever is earlier b. Three (3) years counted from the time of filing or deadline whichever is later c. Ten (10) years counted from the time of filing or deadline for filing whichever is d. Ten (10) years counted from the date of discovery by the Bureau of Internal Revenue that no return was filed.

15. 14. Multiple choice Mang Ben filed an income tax return for the calendar year 2018 on March 10, 2019. The BIR issued a Formal Letter of Demand/Final Assessment Notice on April 10, 2021 which has become final, executory and demandable. When is the last day for the BIR to collect? a. April 10, 2026 c. April 15, 2022 b. April 10, 2024 d. March 10, 2022

16. 15. Multiple choice Which of the statements regarding collection of tax assessment is incorrect? I. Within five (5) years from assessment II. Within ten (10) years in case there is no assessment and in case of false or fraudulent returns with intent to evade the tax. a. I only b. Both I and Il c. Il only d. Neither I nor l

17. 16. Multiple choice The property of a delinquent taxpayer shall not be placed under constructive distraint by the Commissioner of Internal Revenue if in his opinion the taxpayer is a. Retiring from any business subject to tax. b. Intending to leave the country or to remove his property therefrom. c. Doing all possible legal means to dispute the assessment. d. Performing an act tending to obstruct the proceedings for collecting the tax due.

18. 17. Multiple choice A car dealer could not pay his taxes on sales. The dealer delivered several units of the car to the Bureau of Internal Revenue in payment of the taxes. Which of the following statements is correct? a. This is a valid payment of the tax. b. This is in effect collections of the tax by distraint. c. This is a valid forfeiture of property. d. This is not a valid procedure for collection of a tax.

19. 18. Multiple choice A contract whereby the taxpayer and the government by reciprocal concessions avoid a litigation or put an end to one already commenced a. Confiscation b. Distraint c. Compromise d. Suspension

20. 19. Multiple choice One of the following violations cannot be subject to compromise? a. Failure to keep/preserve books of accounts and accounting records. b. Failure to keep books of accounts or records in a native language or English. C. Failure to have books of accounts audited and have financial statements attached to income tax return certified by independent CPA d. Keeping two sets of books of accounts or records.

21. 20. Multiple choice Mr. X paid his income tax liability for 2017 on April 15, 2018. It was found out later on June 30, 2018 that he overpaid by more than P100,000. The last day to file a claim for tax refund a. April 15, 2020 b. June 30, 2021 c. April 15, 2021 d. June 30, 2020

22. 21. Multiple choice Assuming his claim for tax refund in the preceding number was denied and the denial was received on April 30, 2020. The proper remedy available to Bam is? a. Appeal to Court of Tax Appeals on or before May 15, 2020 b. Appeal to Court of Tax Appeals on or before May 20, 2020 c. File a motion for reconsideration on or before May 30, 2020 d. No more remedy since the 2-year period already expired

23. 22. Multiple choice Mr. Bong filed his 2018 income tax return and paid the tax due on April 1, 2019. In case of overpayment, the last day to file claim for refund is on a. April 1, 2021 b. April 1, 2022 c. April 15, 2021 d. April 15, 2022

24. 23. Multiple choice The last day for the taxpayer to claim refund if the tax was paid in installment is a. Two (2) years from the date of first installment payment. b. Two (2) years from the date of final payment. c. Five (5) years from the date of first installment payment d. Five (5) years from the date of second installment payment.

25. 24. Multiple choice As a general rule, within what period must a taxpayer elevate to the Court of Tax Appeals a denial of his application for refund of income tax overpayment? a. Within 30 days from receipt of the Commissioner's denial of his application for refund. b. Within 30 days from receipt of the denial which must not exceed 2 years from payment of income tax. c. Within 2 years from payment of the income taxes sought to be refunded. d. Within 30 days from receipt of the denial or within two years from payment.

26. 25. Multiple choice A company has been assessed of deficiency income tax of P1,000,000, exclusive of interest and surcharge for 2018 taxable year. The tax liability has remained unpaid despite the lapse of June 30, 2020, the deadline for the payment stated in the notice and demand issued by the Commissioner. Payment was made by the taxpayer on Feb. 10, 2021. The correct amount of surcharge, if any, shall be: a. P120,000 c. P500,000 b. P250,000 d. nil

27. 26. Multiple choice The correct amount of deficiency interest shall be: a. P24,986.30 b. P248,530.16 c. P145,315.07 d. P498,530.16

28. 27. Multiple choice The correct amount of delinquency interest shall be: a. P103,215.09 b. P103,125.16 c. P145,315.07 d. P143,853.16

29. 28. Multiple choice What is the total amount due on Feb. 10, 2021?

30. 29. Multiple choice The income tax returns must be filed in a. Duplicate b. Triplicate c. Quadruplicate d. Quintuplicate

31. 30. Multiple choice The books of accounts or records of the taxpayer must not be kept in the following language A. Filipino B. Chinese C. English D. Spanish

32. Thank you, Philippines