TAX REMEDIES Flashcards by [NTC-S] Khailey Claire Macion Rosales

Philippine taxes are assessed by the government subject to the concurrence of the taxpayers.

False

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An assessment will not push through without the approval of the taxpayer.

False

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Government assessment is prima facie presumed correct and done in good faith.

True

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Recovering erroneously paid tax is a government remedy

False

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The government remedies are assessment and collections.

True

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The taxpayers’ remedies include payment of tax or delaying government collections until the tax prescribes

False

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An assessment is a notice of tax deficiency or delinquency coupled with a demand for its payment.

True

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To determine the correct tax, the Commissioner of Internal Revenue can inquire into the balances of bank accounts of the taxpayers.

False

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The assessment must be made within 3 years from the filing of the return.

False

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Pre-assessment notice is always required to be given to a taxpayer who will be assessed

False

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Assessments must always be coupled by a demand for the payment of the tax.

True

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The failure of the taxpayer to respond within 15 days shall result to the issuance of a final assessment that can no longer be questioned in court.

True

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A final assessment notice from the BIR can no longer be questioned

False

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A waiver of statutes of limitation is required for a request for reconsideration.

False

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The failure to file a protest shall make the assessment final and executory and unappealable to the CTA

True

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The assessment will become automatically final and executory on both contested and uncontested issues if the taxpayer fails to submit to required supporting documents.

True

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If the BIR finds merits in the taxpayer’s responses to the preliminary assessment letter, the impending assessment may be cancelled.

True

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Assessment that reached the stage of finality shall be enforced for collection

True

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A tax verification notice is also an authority for an examination.

True

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The “letter of authority” is required to be an electronic copy printout.

True

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The 3-year prescriptive period will be extended by any of the following instances except one.
a. Failure of the taxpayer to file a return
b. Waiver by the taxpayer of the statutes of limitation
c. Filing by the taxpayer of a fraudulent return
d. Fortuitous events

D. Fortuitous events

The letter of authority will not be issued by
a. Regional director.
b. Assistant commissioner - LTS.
c. Commissioner of internal revenue.
d. Revenue district officer.

d. Revenue district officer.

A subpoena for the production of documents is a
a. Subpoena tecum
b. Subpoena ad testificandum
c. Subpoena duces tecum
d. Subpoena duces testificandum

c. Subpoena duces tecum

Which is not a taxpayer protest?
a. Request for reconsideration
b. Request for settlement by compromise
c. Request for re-investigation
d. A and B

b. Request for settlement by compromise

Statement 1: A revised assessment can no longer be disputed. Statement 2: A cancelled assessment can no longer be enforced. Which is false? a. Statement 1 b. Statement 2 c. Both statements d. Neither statement

a. Statement 1

Which of the following will not be involved during the assessment stage? a. Preliminary assessment notice b. Formal letter of demand and final assessment notice c. Final decision on disputed assessment d. Preliminary collection letter

d. Preliminary collection letter

Which is not required in an assessment notice? a. A declaration of tax deficiency from the taxpayer b. A demand for the payment of tax deficiency of the taxpayer c. A statement to the effect that the taxpayer must dispute the findings of the examiner d. The details of the supporting facts and the legal basis of the assessment

c. A statement to the effect that the taxpayer must dispute the findings of the examiner

Exceptionally, an FLD/FAN may be issued outright except when a. The taxpayer interposed valid defenses b. The deficiency tax results from mathematical errors c. The deficiency tax pertains to unremitted withholding taxes d. The deficiency tax pertains to excise tax on excisable articles

a. The taxpayer interposed valid defenses

In general, the conduct of the audit investigation of the taxpayer shall not run over a. 60 days. b. 120 days. c. 180 days. d. One year.

b. 120 days.

As a rule, taxpayers shall be subject to audit a. annually. b. at least once a year. c. only once a year.

c. only once a year.

Upon receipt of a preliminary assessment notice, the taxpayer must respond within a. 10 days b. 15 days c. 30 days. d. 60 days.

b. 15 days

The final decision of the CIR may be administratively disputed by the taxpayer within days from receipt thereof. a. 15 days from receipt thereof. b. 15 days from issuance thereof. c. 30 days from receipt thereof. d. 30 days from issuance thereof.

c. 30 days from receipt thereof.

A taxpayer who concedes to a BIR assessment must a. pay the tax. b. file a motion for re-investigation. c. pay the tax and file a claim for refund. d. file a petition for review with the CTA.

a. pay the tax.

New documents are required to support a a. Request for reconsideration b. Request for re-investigation c. Both A and B d. Neither A nor

b. Request for re-investigation

The newly discovered document must be submitted within a. 60 days from the receipt of the FLD/FAN. b. 60 days from the submission of the protest. c. 30 days from the receipt of the pre-assessment notice. d. 30 days from the issuance of the FLD/FAN.

b. 60 days from the submission of the protest.

A taxpayer's motion for re-investigation may be acted upon by the BIR within a. 180 days from the submission of documents. b. 180 days from the filing of the protest. c. 60 days from the filing of the filing of the protest. d. 60 days from the receipt of the final assessment notice.

a. 180 days from the submission of documents.

The BIR found reasonable basis to assess the taxpayer for delinquent income taxes for the calendar year 2015. The assessment must be served a. On April 15, 2018. b. Before April 15, 2018. c. On or before April 15, 2018. d. On or before April 15, 2019.

d. On or before April 15, 2019.

Mr. Yaman filed his 2014 income tax return on June 30, 2015. The BIR discovered a deficiency income tax on August 15, 2016. The deficiency tax assessment must be served a. On April 15, 2018 b. On or before April 15, 2018 c. On or before June 30, 2018 d. On or before August 15, 2019

c. On or before June 30, 2018

Mr. Taba filed his 2015 income tax return on March 1, 2016. On October 15, 2017, the BIR discovered in an audit that the return filed was fraudulent. When is the last day to send the assessment? a. April 15, 2020 b. March 1, 2026 c. April 15, 2026 d. October 15, 2027

d. October 15, 2027

On May 15, 2014, the BIR discovered that the taxpayer did not file his income tax return for the year 2012. When is the last day to send the assessment? a. May 15, 2019 b. April 15, 2016 c. May 15, 2024 d. April 15, 2022

c. May 15, 2024

On June 3, 2015, the BIR sent a deficiency assessment on the 2013 income tax of a taxpayer which had become final and executory. The taxpayer filed the pertinent income return on time on April 2, 2014. When is the last day of the BIR to collect by distraint and/or levy or by judicial action? a. July 3, 2018 b. July 3, 2020 c. April 2, 2017 d. April 2, 2024

b. July 3, 2020

Mr. Kumon received a deficiency assessment (dated June 6, 2014) on his 2013 income tax on June 8, 2014. If he did not settle the tax, he should expect the BIR to enforce collection by distraint levy and/or judicial action a. by June 8, 2019. b. on or before June 8, 2019. c. by June 6, 2019 d. on or before June 6, 2019

d. on or before June 6, 2019

A taxpayer who received preliminary assessment on June 15, 2014 must a. file a protest on or before July 15, 2014. b. submit documents on or before September 13, 2014. c. submit a written reply to the preliminary assessment on or before June 30, 2014. d. file a petition for review to the Court of Appeals on or before June 30, 2014.

c. submit a written reply to the preliminary assessment on or before June 30, 2014.

A taxpayer received a formal letter of demand and a final assessment notice on August 31, 2020. He must a. file a protest on or before September 30, 2020. b. make a written reply on or before September 15, 2020. C. await for a subpoena duces tecum on or before September 30, 2020. d. file a petition for review with the Court of Tax Appeals before September 15, 2020.

a. file a protest on or before September 30, 2020.

A taxpayer submitted a motion for reconsideration in response to the BIR's formal letter of demand and final assessment notice. He must a. Wait for a period of 180 days for BIR action. b. Submit documents within the 180-day period. c. Submit documents within 60 days. d. Wait for the BIR to issue a subpoena duces tecum.

a. Wait for a period of 180 days for BIR action.

A taxpayer submitted a motion for re-investigation in response to the BIR's formal letter of demand and final assessment notice. He must a. Wait for a period of 180 days for BIR action. b. Submit documents within the 180-day period. c. Submit documents within 60 days. d. Wait for the BIR to issue a subpoena duces tecum.

c. Submit documents within 60 days.

A taxpayer received an adverse final decision on a disputed assessment which was signed by an authorized representative of the Commissioner. He must a. file a petition for review on certiorari with the Supreme Court within 15 days. b. file a petition for review with the Court of Tax Appeals within 30 days. C. elevate the case before the Commissioner of Internal Revenue. d. B or C

d. B or C

An adverse final decision on disputed assessment issued by the Commissioner must be disputed by filing a a. petition for review with the National Evaluation Board. b. motion for reconsideration with the Commissioner. C. petition for review with the Court of Tax Appeals. d. petition for review on certiorari with the Supreme Court.

C. petition for review with the Court of Tax Appeals.

The following data relates to a disputed assessment of a taxpayer: Deadline of the return: June 30, 2017 Filing of the return: June 30, 2017 Date PAN was received: July 15, 2020 No reply was made to the PAN Date FLD/FAN was received: August 5, 2020 What is the taxpayer's next procedure? a. He must file a motion for reconsideration on or before September 4. 2020. b. He must request for a re-investigation on or before September 4, 2020. C. He must submit documents on or before October 4, 2020. d. No more because the taxpayer defaulted.

d. No more because the taxpayer defaulted.

. The following data relates to the disputed assessment of a taxpayer: Date of denial of protest: March 5, 2016 Date petition for review was filed with CTA: March 29, 2016 Date of release of an adverse CTA en banc decision: December 4, 2019 What is the taxpayer's next procedure? a. File a motion for reconsideration with the BIR on or before January 3, 2020 b. Petition for review on certiorari with the Supreme Court on or before January 3, 2020 C. Petition for review on certiorari with the Supreme Court on or before December 19, 2020 d. No more. The taxpayer has slept on his right.

C. Petition for review on certiorari with the Supreme Court on or before December 19, 2020

A taxpayer defaulted for failing to seasonably interpose a valid protest on an assessment issued January 5, 2014. On December 31, 2020, the BIR sent a preliminary collection letter. What is the best defense of the taxpayer? a. Raise the issue of prescription. b. Apply for a compromise settlement. C. Apply for an extended payment term

a. Raise the issue of prescription.