Book 2 Flashcards by Aiman Pansar

It refers to all revenues and receipts collected or received forming the gross accretions of funds of
the local government unit.

Income

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It has the power to create its own sources of revenue and to levy taxes, fees and charges subject to
the provisions of the Local Government Code of 1991, consistent with the basic policy of local
autonomy.

Local Government Unit

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The authority of the government to classify the object of taxation, to be valid, must be reasonable
and this requirement is not deemed satisfied unless:
 a. It is based upon substantial distinctions which make the real differences.
 b. These are germane to the purpose of the legislation or ordinance.
 c. The classification applies, not only to present conditions, but, also, to future conditions
substantially identical to those of the present.
 d. The classification applies equally to all those who belong to the same class.
 e. All of the above

e. All of the above

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The following describe what the taxes, fees and other impositions shall be except:
 a. uniform under all circumstances.
 b. equitable and based as far as possible on the taxpayer’s ability to pay.
 c. levied and collected only for public purposes.
 d. not unjust, excessive, oppressive, or confiscatory.
 e. not contrary to law, public policy, national economic policy, or in restraint of trade.

a. uniform under all circumstances.

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The following are the requirements for a local ordinance to be valid except:
 a. not contravene the Constitution or any stature.
 b. not be partial or discriminatory.
 c. be general and consistent with public policy.
 d. neither prohibit nor regulate trade.
 e. None of the above

d. neither prohibit nor regulate trade.

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The conduct of public hearings shall be governed by the following procedure except:
 a. Pre-publication/posting and written notices to interested/affected parties
 b. Public hearing prior to enactment of the tax ordinance or revenue measure
 c. Preparation of minutes by the secretary of the sanggunian
 d. Approval and publication of tax ordinance and revenue measures
 e. Dissemination of approved copies to interested parties

e. Dissemination of approved copies to interested parties

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The local chief executive may veto any ordinance of the sangguniang panlalawigan, sangguniang
panlungsod, or sangguniang bayan. He/she shall communicate the veto:

 Within 15 days in the case of a province
 Within 10 days in the case of a city
 Within 10 days in the case of a municipality

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Approved tax ordinances and revenue measures shall be published within:

10 days from approval

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The Sangguniang Panlalawigan shall review the approved city or municipal ordinances or resolutions
within:

3 days from approval

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The city or municipal ordinance or resolution shall be presumed consistent with law and therefore
valid if no action has been taken by the sangguniang panlalawigan within:

30 days

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Appeal on the constitutionality or legality of an ordinance may be made within 30 days to the
Secretary of Justice who shall render a decision within:

60 days from receipt of the appeal

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The penalties for violation of tax ordinances prescribed by the local government unit:
 a. is a fine between Php 1,000.00 – Php 5,000.00
 b. is imprisonment from 1 to 6 months
 c. shall be either or both of the above
 d. shall only be either of the above
 e. shall always be both of the above

c. shall be either or both of the above

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The following are some of the taxes, fees and charges specifically reserved to provinces except:
 a. Professional Tax (Sec. 139, LGC)
 b. Tax on Business (Sec. 143, LGC)
 c. Tax on Business of Printing and Publication (Sec. 136, LGC)
 d. Franchise Tax (Sec. 137, LGC)
 e. Amusement Tax (Sec. 140, LGC)

b. Tax on Business (Sec. 143, LGC)

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The following are the taxes, fees and charges that may be levied by the municipalities and not
otherwise levied by provinces except:
 a. Community Tax (Sec. 156, LGC)
 b. Fees for Sealing and Licensing of Weights and Measures (Sec. 148, LGC)
 c. Fishery Rentals, Fees and Charges (Sec. 149, LGC)
 d. Tax on Sand, Gravel and Other Quarry Resources (Sec. 138, LGC)
 e. Fees and Charges on Business and Occupation (Sec. 236, LGC)

d. Tax on Sand, Gravel and Other Quarry Resources (Sec. 138, LGC)

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Except the rates of professional and amusement taxes, the rates of taxes that the city may levy may
exceed the maximum rates allowed for the province or municipality by not more than:

50%

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The rate of tax on stores or retailers with fixed business establishments with gross sales or receipts
of the preceding calendar year of Php 50,000.00 or less, in the case of cities and Php 30,000.00 or less,
in the case of municipalities, shall not exceed:

1% on such gross sales or receipts

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The application for Barangay clearance for any business or activity shall be acted upon within:

7 working days from filing thereof

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The barangay may levy reasonable fees and charges for the following except:
 a. On commercial breeding of fighting cocks, cockfights and cockpits
 b. On business and occupation
 c. On places of recreation which charge admission fees
 d. On billboards, signboards, neon signs, and outdoor advertisements
 e. None of the above

b. On business and occupation

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Local government units share from the income generated by the national government from all taxes
and revenue sources for the following except:
 a. Internal Revenue Allotment (IRA)
 b. Tobacco Excise Tax
 c. Proceeds from the utilization of national wealth within their territorial jurisdiction
 d. Special shares from other national taxes, particularly on ECOZONES and specified portions of
the Value Added Tax
 e. None of the above

e. None of the above

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It refers to a shortfall of revenues against disbursements.

Budget deficit

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The share of all provinces from the total annual Internal Revenue Allotment (IRA) shall be at an
allocation of:

23%

The share of all municipalities from the total annual Internal Revenue Allotment (IRA) shall be at an
allocation of:

34%

The share of all barangays from the total annual Internal Revenue Allotment (IRA) shall be at an
allocation of:

20%

Every barangay with a population of not less than 100 inhabitants shall be entitled to an Internal
Revenue Allotment (IRA) chargeable against the 20% share of the barangay from the total IRA of not
less:

Php 80,000.00

The individual shares in Internal Revenue Allotment (IRA) of each LGU shall be automatically released direct to the provincial, city, municipal, or barangay treasurer, as the case may be, on:

a quarterly basis

At what minimum percentage of the Internal Revenue Allotment (IRA) for the year be mandatory for each LGU to asset aside in its annual budgets as appropriation for local development projects that are embodied or contained in the local development plans?

20%

It refers to the natural resources situated within the Philippine territorial jurisdiction including lands of public domain waters, minerals, coal, petroleum, mineral oils, potential energy forces, gas and oil deposits, forest products, wildlife, flora and fauna, fishery and aquatic resources and all quarry products.

National wealth

From the gross collection derived by the national government from the preceding fiscal year from the mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges as well as administrative charges accruing to the national government, the LGU shall, in addition to the IRA, have a share of:

40%

In lieu of the national and local taxes, businesses and enterprises in Special Economic Zones shall pay gross income tax of:

Other common sources of LGU revenues outside taxation, fees and charges, and shares in national taxes and wealth are the following except:  a. Donations  b. Sale of Fixed Assets  c. Contributions  d. Sale of Waste Materials  e. Interest Income

a. Donations

For drawing of checks payable to the LGU, under no circumstances shall the following checks be accepted except:  a. Post-dated or Stale checks  b. Checks drawn payable to the official title or designation of the LCE or Treasurer of the LGU  c. Indorsed checks  d. Checks drawn payable to “Cash”  e. Checks drawn payable to the name of the Head of the LGU or any of its officers

b. Checks drawn payable to the official title or designation of the LCE or Treasurer of the LGU

Upon receipt of the dishonored check and debit memo from the depository bank concerned, the collecting officer or Local Treasurer shall accomplish the “Notice of Dishonor” and sign it in behalf of the local chief executive within:

3 days

The local chief executive upon the recommendation of the Local Treasurer, shall immediately transmit the certified copies of the dishonored check, debit memo from the bank and notice of dishonor to the city or provincial prosecutor if the drawer of the dishonored check due to lack or insufficiency of funds fail to settle his account within:

5 days from receipt of the notice of dishonor

Unless the court shall direct otherwise, pending their redemption, dishonored checks shall remain in the custody of:

Local Treasurer

The following are Accountable Forms with money value except:  a. Checks  b. Cash Tickets  c. Certificate of Transfer of Large Cattle  d. Certificate of Ownership of Large Cattle  e. Marriage License Certificate

a. Checks

Issuance of Accountable Forms to bonded officers has to be in sufficient quantities based on their actual needs but not to exceed use of:

3 months

All Provincial, City and Municipal Treasurers shall deposit their funds and maintain deposit accounts with Land Bank of the Philippines and Development Bank of the Philippines. By way of exception, and subject to prior approval of the Department of Finance, they may likewise do so with the following except:  a. Bank of the Philippine Islands  b. Philippine National Bank  c. Philippine Postal Savings Bank  d. Philippine Veterans Bank  e. Al Amanah Islamic Investment Bank of the Philippines

a. Bank of the Philippine Islands

The Barangay Treasurer shall deposit all collections with the city or municipal treasury or in the depository account maintained in the name of the barangay within:

5 days after receipt thereof

It refers to available cash which the local government unit can freely invest in government securities and/or fixed term deposits with authorized government depository banks.

Idle funds

The Treasurer shall maintain the following cashbooks except:  a. Cashbook – Cash in Treasury  b. Cashbook – Cash in Bank  c. Cashbook – Daily Recording  d. Cashbook – Cash Advances  e. None of the above

c. Cashbook – Daily Recording

It shall be maintained by individual Tellers, Fields and Market Collectors and other authorized personnel receiving collections outside of the local government office.

The Teller’s/Collector’s Cashbook

It shall be used by the designated Liquidating Officer to record all collections turned over to him by Tellers, Field and Market Collectors, and remittances to the Local Treasurer/Cashier.  a. The Treasurer’s Cashbook  b. The Teller’s/Collector’s Cashbook  c. Certificate of Transactions in the Cashbook  d. The Liquidating Officer’s Cashbook  e. None of the above

d. The Liquidating Officer’s Cashbook

The Report of Collections and Deposits shall be prepared daily by:  a. Tellers/Collectors  b. Liquidating Officers  c. Local Treasurer/Cashier  d. None of the above  e. All of the above

e. All of the above

The following shall govern the examination by the Local Treasurer of books of accounts and pertinent records of businessmen except:  a. Examination of Books of Accounts and Pertinent Records of Businessmen  b. Authority to Conduct Examination or provide the Written Authority to qualified officers  c. Deputize the Administrative Officer of the Sangguniang Panlungsod to examine the books of accounts of business establishments  d. Time, Frequency and Certification  e. Access to the Bureau of Internal Revenue Records

c. Deputize the Administrative Officer of the Sangguniang Panlungsod to examine the books of accounts of business establishments

In case the books of accounts and other records are not available on the first visit, another appointment with the business owner/representative, after serving the Letter of Authority, should be made not later than:

3 days

The deputized Examiners shall perform the following activities except:  a. Review of pertinent records of the business establishment to be examined  b. Review of the working papers, if any, of the business establishment, if previously examined  c. Submission to the Owner/President of the business establishment to be examined the Letter of Appointment/Authority to conduct the examination  d. Acceptance of books of accounts and documents for verification/examination  e. Preparation of Bank Reconciliation Statements

e. Preparation of Bank Reconciliation Statements

It shows the comparison between the gross receipts/sales declared per business permit application and the gross receipts/sales as appearing in the sales documents examined.  a. Letter of Confirmation/Certificate of Confirmation/Certificate of Examination  b. Tax Data Working Papers or Tax Data Sheet  c. Letter of Assessment/Assessment Notice  d. Tax Data and Assessment Form  e. None of the above

b. Tax Data Working Papers or Tax Data Sheet

It shows the detailed computation of the additional assessment for business tax based on the computed understatement of sales/receipts declared in the business permit application, the amount of surcharges and penalties, the interest on the deficiency tax assessed, as well as the signatures of the Examination Team and the Local Treasurer.  a. Letter of Confirmation/Certificate of Confirmation/Certificate of Examination  b. Tax Data Working Papers or Tax Data Sheet  c. Letter of Assessment/Assessment Notice  d. Tax Data and Assessment Form  e. None of the above

d. Tax Data and Assessment Form

It shows the amount of tax deficiency inclusive of penalties, surcharges and interest resulting from the conduct of the examination.  a. Letter of Confirmation/Certificate of Confirmation/Certificate of Examination  b. Tax Data Working Papers or Tax Data Sheet  c. Letter of Assessment/Assessment Notice  d. Tax Data and Assessment Form  e. None of the above

c. Letter of Assessment/Assessment Notice

Its issuance signifies the completion of the examination conducted.  a. Letter of Confirmation/Certificate of Confirmation/Certificate of Examination  b. Tax Data Working Papers or Tax Data Sheet  c. Letter of Assessment/Assessment Notice  d. Tax Data and Assessment Form  e. None of the above

a. Letter of Confirmation/Certificate of Confirmation/Certificate of Examination