TAX LAWS

Question 1

Sources of Tax Authority

The three branches of the national government are the President and his:

Answer 1

1. administration (executive),
2. the Congress (legislative), and
3. the Courts (Judicial).

Question 2

______ creates statutory law. Republic Act 8424, The National Internal Revenue Code (NIRC) of 1997, is a statutory law.

Answer 2

Congress

Question 3

The administrative branch of the national government includes the Department of Finance (DOF), of which the _______ is a bureau.

Answer 3

Bureau of Internal Revenue (BIR)

Question 4

Two commonly encountered types of administrative tax authorities are _____ and ______.

Answer 4

1. Revenue Regulations
2. Revenue Rulings

Question 5

Two commonly encountered types of administrative tax authorities

_____ are administrative interpretations of the statutes enacted by Congress and tend to be somewhat more detailed than the Code itself.

Answer 5

Revenue Regulations

Question 6

Two commonly encountered types of administrative tax authorities

______ are much more detailed, as they are issued in order to explain the tax results of very specific transactions.

Answer 6

Revenue Rulings

Question 7

Court decisions occur when the BIR and taxpayers are ______ on what constitutes the correct application of the tax statutes to specific situations.

Answer 7

unable to agree

Question 8

While ______ writes the statutes an ______ implements them, the ______ has the final say on what the words of the statutes really mean in actual application.

Answer 8

1. Congress
2. administrative branch
3. judiciary branch

Question 9

Tax law in general is composed of all three elements:

Answer 9

(1) the Code,
(2) Regulations and Rulings and
(3) decisions of various courts that hear tax cases.

Question 10

Sources of Tax Laws

Answer 10

1. Constitution;
2. Statutes and Presidential Decrees
3. Revenue Regulations by the Department of Finance;
4. Rulings issued by the Commissioner of Internal Revenue and Opinions by the Secretary of Justice;
5. Decisions of the Supreme Court and the Court of Tax Appeals;