VISAYAS SCHOOL OF ACCOUNTANCY / IRS CPA REVIEW

Iloilo City
TAXATION

REMEDIES
EXERCISE

1. The civil remedies for the collection of internal revenue taxes, fees or
charges, and any increment thereto resulting from delinquency shall be
the following, except:
a.
b.
c.
d.

By distraint of goods or chattels

By levy upon real property and interest in rights to real property
By civil or criminal action
None of the above

2. If either or both of the following circumstances are present:

A. A reasonable doubt as to the validity of the claim against the
taxpayer exists; or
B. The financial position of the taxpayer demonstrates a clear inability
to pay the assessed tax.
The Commissioner of Internal Revenue may:

a.

Compromise the
payment of tax
Yes

Abate or cancel
tax liability
Yes

b.

No

No

c.

Yes

No

d.

No

Yes

3. If either or both of the following circumstances are present:

A. The tax or any portion thereof appears to be unjustly or excessively
assessed; or
B. The administration and collection costs involved do not justify the
collection of the amount due.
The Commissioner of Internal Revenue may:

a.

Compromise the
payment of tax
Yes

Abate or cancel
tax liability
Yes

b.

No

No

c.

Yes

No

d.

No

Yes

4. All criminal violations involving the Tax Reform

compromised. Which of the following may not?
a.

Already filed in court

Yes

Involving fraud
Yes

b.

No

No

c.

Yes

No

d.

No

Yes

Act

may

be

5. Which of the following cases may not be compromised?

a.
b.
c.
d.

Delinquent accounts
Civil tax cases being disputed before the courts
Collection cases filed in courts
Cases which become final and executory after the final judgment of
a court.

6. Which of the following cases may be compromised?

a.
b.
c.
d.

Withholding tax cases

Criminal violations already filed in court
Cases under administrative protest pending in the regional offices
Delinquent accounts with duly approved schedule of installment
payments

7. A compromise offer was made by a taxpayer involving a basic

assessed tax of P750,000. The compromise shall be resolved by
a.
b.
c.
d.

National Evaluation Board

Regional Evaluation Board
Commissioner of Internal Revenue
Regional Director

8. Which of the following compromise tax liability settlement is allowable

under the law?
a. Compromise amount equal to 10% of the basic tax assessed, where
the basis is the financial incapability of the taxpayer
b. Compromise amount equal to 10% of the basic tax assessed, where
the basis is the doubtful tax assessment
c. Compromise amount equal to 40% of basic tax assessed, where the
basis is the doubtful tax assessment
d. Compromise amount equal to 40% of the basic tax assessed, where
the basis is the fraudulent tax return filed
9. Which statement is correct? In case of an assessment of a tax:
a. A protest should be filed by the taxpayer, otherwise the assessment
becomes final and cannot be questioned anymore in court

b. A protest may be filed by the taxpayer anytime before the Bureau of

Internal Revenue collects the tax
c. The assessment should be made by the Bureau of Internal Revenue
within five years from the date of filing of the return
d. The assessment shall include only the tax proper
10.
Statement 1: A pre-assessment notice shall be required before
an assessment may be made.
Statement 2: The taxpayer shall be informed in writing of the law and
the facts on which the assessment is made otherwise the assessment
shall be void.
a.
b.
c.
d.

First statement is true while second statement is false

First statement is false while second statement is true
Both statements are true
Both statements are false

11.
Statement 1: The taxpayer shall respond to a pre-assessment
notice, and if he fails to respond, an assessment shall be issued.
Statement 2: An assessment issued may be questioned
administratively with the Bureau of Internal Revenue.
a.
b.
c.
d.
12.

Both statements are true

Both statements are false
Statement 1 is true while statement 2 is false
Statement 1 is false while statement 2 is true
An assessment shall become final if:

Statement 1: The assessment is not protested administratively if the

protest is not filed with the Bureau of Internal Revenue within thirty
days from receipt of the assessment.
Statement 2: Relevant supporting documents were not presented to
the Bureau of Internal Revenue within sixty days from filing the protest
on the assessment.
a.
b.
c.
d.

First statement is true while second statement is false

First statement is false while second statement is true
Both statements are true
Both statements are false

13.
Which of the following statements is wrong? An appeal on an
assessment may be made to the Court of Tax Appeals:
a. If the Bureau of Internal Revenue denies the protest in whole or in
part
b. If the Bureau of Internal Revenue does not act on the protest within
one hundred eighty days from taxpayers submission of documents
supporting his protest
c. Within thirty days from receipt of the decision of the Bureau of
Internal Revenue on the protest or within thirty days from the lapse
of the one hundred eighty day period (submission of documents on
the protest)
d. None of the above
14.

Which of the following statements is wrong?

a. An assessment which is not protested and appealed to the Court of

Tax Appeals becomes final, executory and demandable
b. The proceedings on the protest in the Bureau of Internal Revenue is
an administrative proceedings
c. The proceedings in the Court of Tax Appeals is a judicial proceeding
d. The proceedings in the Court of Tax Appeals is a quasi-judicial
proceedings
15.
Which of the following is the correct prescription period for tax
assessment?
a.
b.
c.
d.

Within
Within
Within
Within

3 years after the correct tax return is filed

3 years after the discovery of failure to file a tax return
10 years after the correct tax return is filed
10 years from the prescribed date of filing of the tax return

16.
When could levy of real property as a civil tax collection remedy
be done?
a.
b.
c.
d.

Before distraint proceeding

After distraint proceeding
Simultaneously with the distraint proceeding
All of the above

17.
Distraint proceeding as a tax collection remedy could be carried
out by the Revenue District Office when the pertaining tax liability is
a.
b.
c.
d.

Not
Not
Not
Not

more
more
more
more

than
than
than
than

P1,000,00
P1,500,00
P10,000,000
P15,000,000

18.
A tax collection remedy where the Commissioner informs the
Register of Deeds so that the real properties of the delinquent taxpayer
could not be transacted or transferred until the tax liabilities are fully
paid is
a.
b.
c.
d.

Levy
Distraint
Tax lien
Forfeiture

19.
If taxes are not voluntarily paid by the taxpayer, the seizure by
the government of personal property to enforce tax payments followed
by its public sale pertains to
a.
b.
c.
d.

Distraint
Levy
Forfeiture
Confiscation

20.
Which tax administration aspect refers to the taking of a
delinquent taxpayers property in favor of the government?
a. Assessment

b. Forfeiture
c. Expropriation
d. Compromise settlement
21.
A collection remedy which involves the seizure by the
government of personal property of the defaulting taxpayer, to be
followed by its public auction sale if the taxes are not voluntarily paid is
a.
b.
c.
d.

Confiscation
Distraint
Forfeiture
Levy

22.
In case the warrant of levy on real property is not issued before
or simultaneously with the warrant of distraint on personal property,
and personal property of the taxpayer is not sufficient to satisfy his tax
delinquency, the Commissioner or his duty authorized representative
shall within
a. 30 days after execution of the distraint, proceed with the levy on
the taxpayers real property
b. 60 days after execution of the distraint, proceed with the levy on
the taxpayers real property
c. 30 days after execution of the distraint, proceed with the levy and
distraint of the taxpayers real property
d. 60 days after execution of the distraint, proceed with the levy and
distraint of the taxpayers real property
23.
The following are requisites for exercise of remedy of distraint or
levy. Which is the exception?
a. The taxpayer must be delinquent in the payment of tax
b. There must be subsequent demands for its payments
c. The taxpayer must fail to pay the delinquent tax at the time
required
d. The period within which to assess or collect the tax has prescribed
24.
After the taxpayer has filed a protest of assessment within the
reglamentary period, he has to submit supporting documents within
a.
b.
c.
d.
25.

30
60
30
60

days
days
days
days

from
from
from
from

filing of protest of assessment

filing of protest of assessment
receipt of notice of assessment
receipt of notice of assessment

Which statement is wrong?

a. Stocks and securities shall be distrained by serving a copy of the

warrant of distraint upon the taxpayer and upon the president,
manager, treasurer or other responsible officer of the corporation,
company or association which issued said stocks or securities
b. Debts and credits shall be distrained by leaving with the person
owing the debts or having in his possession or control such credits a
copy of the warrant of distraint

c. Bank accounts are garnished by serving a warrant of garnishment

upon the taxpayer and upon the president, manager, treasurer or
other responsible officer of the bank
d. None of the above
26.
Statement 1: If the taxpayer does not do anything within 30 days
from receipt of the notice of assessment, the assessment becomes
final, executory.
Statement 2: If the taxpayer receives the BIRs denial of his
administrative protest or dispute, the taxpayer should appeal the
decision to the Court of Tax Appeals within 30 days from receipt of the
denial.
a.
b.
c.
d.

Only statement 1 is correct

Only statement 2 is correct
Both statements are correct
Both statements are wrong

27.
a.
b.
c.
d.

The decision of the CTA en banc is appealable to

The
The
The
The

Court of Appeals
Secretary of Finance
Commissioner of Internal Revenue
Supreme Court

28.
The Commissioner of Internal Revenue plans to avail of judicial
remedy for collection of tax liability of a taxpayer amounting to
P1,500,00. Where will the Commissioner file the collection case?
a.
b.
c.
d.

Municipal Trial Court

Regional Trial Court
Court of Tax Appeals
Court of Appeals

29.
a.
b.
c.
d.

The Court of Tax Appeals is composed of

A
A
A
A

presiding justice and five associate justices

presiding judge and five associate judges
presiding justice and four associate justices
chief justice and five associate justices

30.
Assessment received January 5, 2011; Petition for
reconsideration filed with the Bureau of Internal Revenue February 1,
2011; Documents supporting the petition filed by the taxpayer
February 7, 2011. Decision of the Bureau of Internal Revenue denying
the petition was received March 22, 2011; Second request for
reconsideration filed with the Bureau of Internal Revenue March 30,
2011; Decision of denial of second request for reconsideration was
received April 12, 2011; Last day to appeal to the Court of Tax
Appeals:
a.
b.
c.
d.

May 12, 2011

July 4, 2011
May 4, 2011
None of these

31.
Date assessment was received January 2, 2011. Petition for
reconsideration was filed with the Bureau of Internal Revenue January
12, 2011. Documents supporting the petition for reconsideration was
filed with the Bureau of Internal Revenue January 22, 2011. No
decision on the protest by July 12, 2011. Last day to appeal to the
Court to Tax Appeals:
a.
b.
c.
d.

July 21, 2011

August 20, 2011
No more appeal, as the period to appeal had elapsed
None of the above

32.
Date assessment was received February 8, 2011. Petition for
reconsideration was filed with the Bureau of Internal Revenue on
February 18, 2011. Documents supporting the petition were filed with
the Bureau of Internal Revenue on February 28, 2011. Decision of
denial of the petition was received on March 11, 2011. Second request
for reconsideration was filed with the Bureau of Internal Revenue on
March 21, 2011. Date revised assessment was received was April 2,
2011. Last day to appeal to the Court of Tax Appeals:
a.
b.
c.
d.

April 22, 2011

May 2, 2011
May 3, 2011
None of these

33.
Statement 1: A claim for refund for tax erroneously paid must be
made by the taxpayer within 2 years from the date of payment.
Statement 2: In case of denial by the Bureau of Internal Revenue of
claim for refund for tax erroneously paid, the taxpayer has 30 days to
appeal to the Court of Tax Appeals, and in no case shall the appeal
period go beyond 2 years from the date of payment.
a.
b.
c.
d.

Statement 1 is correct, but statement 2 is wrong

Statement 1 is wrong, but statement 2 is correct
Both statements are correct
Both statements are wrong

34.
Date the national internal revenue tax erroneously paid January
5, 2010; Date a claim for refund was filed with the Bureau of Internal
Revenue February 6, 2011; Date decision of denial by the Bureau of
Internal Revenue was received October 28, 2011. Last day to appeal
to the Court of Tax Appeals:
a.
b.
c.
d.

February 6, 2012
January 5, 2012
December 27, 2011
November 27, 2011

35.
Date the national internal revenue tax was paid April 10, 2009.
Claim for refund was filed with the Bureau of Internal Revenue March
10, 2010. Date decision of denial of refund was received March 21,
2011. Last day to appeal to the Court of Tax Appeals:
a. April 20, 2011
b. April 10, 2011
c. April 21, 2011

d. None of these
36.
Statement 1: If before the expiration of the time prescribed for
the assessment of the tax, both the Commissioner and the taxpayer
have agreed in writing to its assessment after such time, the tax may
be assessed within the period of extension agreed upon.
Statement 2: Under the doctrine of equitable recoupment, a liability for
tax, the collection of which has not prescribed may be offset against a
refund of another tax the refund of which has prescribed. Conversely, a
liability for a tax the collection for which has prescribed may be offset
against a refund of another tax the refund for which has not yet
prescribed. This American jurisprudence can very well apply in the
Philippines.
a.
b.
c.
d.

Statement 1 is correct, but statement 2 is wrong

Statement 1 is wrong, but statement 2 is correct
Both statements are correct
Both statements are wrong

37.
Statement 1: No court shall have the authority to grant an
injunction to restrain the collection of any national internal revenue
tax, fee or charge imposed by the National Internal Revenue Code.
Statement 2: Judicial proceedings for the collection of an internal
revenue tax may be instituted even without a prior assessment of the
tax on the taxpayer.
a.
b.
c.
d.

Both statements are true

Both statements are false
First statement is true while second statement is false
First statement is false while second statement is true

38.
Statement 1: A refund check or warrant which shall remain
unclaimed or uncashed within five years from the date said warrant or
check was mailed or delivered shall be forfeited in favor of the
Government.
Statement 2: A tax credit certificate which shall remain unutilized after
five years from the date of issue shall, unless revalidated, be
considered invalid and shall not be allowed as payment of any internal
revenue liabilities of the taxpayer.
a.
b.
c.
d.

Both statements are correct

Both statements are wrong
First statement is correct while second statement is wrong
First statement is wrong while second statement is correct

39.
Statement 1: A tax lien attaches to all the property and property
rights of a taxpayer only from the time when the assessment was
made by the Bureau of Internal Revenue for the unpaid tax, with
interest, penalties and costs.
Statement 2: A tax lien shall not be valid against any mortgagee,
purchaser or judgment creditor until notice of such lien shall be filed in
the office of the register of Deeds of the province or city where the
property is situated or located.
a. First statement is true; second statement is false
b. First statement is false; second statement is true

c. Both statements are true

d. Both statements are false
40.
Statement 1: A substantial underdeclaration of taxable sales,
receipts or income or a substantial overstatement of deductions shall
constitute prima facie evidence of a false or fraudulent return.
Statement 2: A return, statement or declaration filed with the Bureau
of Internal Revenue may not anymore be modified, changed or
amended.
a.
b.
c.
d.

First statement is true while second statement is false

First statement is false while second statement is true
Both statements are true
Both statements are false
- End -