LOPEZ, ELLA MARIE P.

FIN195

Memory Test 2:

True or False:
TRUE 1. A progressive system of taxation means a tax structure where the tax base increases
as the tax rate increases.
TRUE 2. Tax exemption is a grant of immunity to a particular taxpayer from tax where others
obliged to pay.
TRUE 3. Tax avoidance is a form of tax escape.
FALSE 4. Tax evasion is not punishable.
TRUE 5. A tax may include the power to destroy.
FALSE 6. A tax may be imposed violating uniformity of taxation.
FALSE 7. A tax may be subjected to set – off or compensation.
FALSE 8. A tax ordinarily include interest.
FALSE 9. A tax bill may embrace more than one subject.
TRUE 10. Non – payment of tax cannot result to criminal liability on the part of the taxpayer,
only civil liability.

MULTIPLE CHOICE:

11. All of the characteristics of power of taxation except

a. It is an inherent power
b. It is legislative in character
c. It is civil in character.
d. It is subject to inherent and constitutional limitation.

12. Our tax laws are:

a. Political in nature c. Penal in nature
b. Civil in nature d. Social in nature

13. Also known as tax administration

a. Collection of taxes c. Payment of taxes
b. Levying of taxes d. Incidence of taxation

14. All are essential characteristics of a tax, except

a. It is enforced contribution
b. It is generally unlimited in amount
c. It is generally payable in money
d. It is a proportionate burden.

15. All are secondary purpose of taxation, except:

a. Sumptuary purpose c. Compensatory purpose
b. Regulatory purpose d. Uniformity purpose

16. In the absence of inherent and constitutional limitation, the power of tax is:
 a. Comprehensive c. Both a and b
b. Unlimited d. Regulatory

17. All are similarities of taxation, police power, and power of eminent domain, except
a. All are necessary attributes of the Constitution
b. All exist independently of the Constitution
c. All contemplate an equivalent benefit
d. All are superior to the non – impairment clause of the Constitution

18. Below are characteristics of sound taxation system, except:

a. Administrative feasibility and compliance
b. Fiscal adequacy
c. Theoretical Justice
d. Uniformity of Taxation

19. It refers to a fraudulent act of minimizing taxes.

a. Tax avoidance c. Tax minimization
b. Tax evasion d. Multiple taxation

20. One of the following is not an inherent limitation

a. Taxes must be for public purpose
b. Equality in taxation
c. Territoriality rule
d. Rule on double taxation

Memory Test 3: General Considerations

Multiple Choice:

1. All of the following is territoriality principle doctrine except one:

a. Residence of the taxpayer.
b. Sources of the income.
c. Situs of the thing or property taxed.
d. International Organizations

2. Taxation is equitable in all of the following, except:

a. Its burden falls on those better to pay.
b. It is based on ability to pay.
c. It is based on benefits received.
d. It is based on uniformity rule.

3. The only tax where non – payment of which will not result to imprisonment.
a. Excise tax c. Personal tax
b. Donor’s tax d. Property tax

4. One of the following is not a major tax under the Tax Code:
a. Income tax c. Excise tax
 b. Donor’s tax d. Estate tax

5. One of the following can be both be as progressive tax and a proportional tax:
a. Donor’s tax c. Both a and b
b. Income tax on individuals d. Estate tax

6. A tax which is both under taxation and police power:

a. Compensatory tax c. National tax
b. Regulatory tax d. General tax

7. A demand on proprietorship
a. Tax c. Toll
b. Special assessment d. License fee

8. Levied only on lands:

a. Tax c. Toll
b. Special assessment d. License fee

9. One of the following is not a source of tax laws.

a. Administrative rulings and opinions
b. Judicial decisions
c. 1987 Constitution
d. Exert opinion on taxation

10. The government may not do all except one:

a. Tax itself
b. Delegate its power to tax to private entities
c. Imposed tax arbitrarily
d. Disregard uniformity in taxation

11. A form of tax escape through which one is given tax immunity wherein others are subjected to tax.
a. Shifting c. Tax exemption
b. Tax immunity d. Tax avoidance

12. A form of tax escape by a manufacturer or producer who improves his proceeds of production
thereby minimizing his unit production cost.
a. Tax avoidance c. Transformation
b. Capitulation d. Shifting

13. A waiver by the government’s right to collect tax:

a. Tax exemption c. Tax avoidance
b. Tax amnesty d. Tax evasion

14. A tax imposed based on the number

a. Income Tax c. Ad valorem tax
b. Specific tax d. Customs duties

15. The theory which most justifies the necessity of taxation:

 a. Protection and benefits theory
b. Revenue purposes theory
c. Lifeblood theory
d. Ability to pay theory

16. One of the characteristics of internal revenue laws is that they are:
a. Criminal in nature
b. Penal in nature
c. Political in nature
d. Generally prospective in application

17.Which of the following is not an example of excise tax?

a. Transfer tax c. Real Property tax
b. Sales tax d. Income tax

18. Taxation is an inherent power because:

a. It is the life blood of the government.
b. Protection and benefit theory.
c. It co-exist with the existence of the state.
d. It is exercised for the general welfare of the people.

19. A tax is invalid, except:

a. Theory of taxation and its purpose are disregarded.
b. Basis of taxation is not recognized.
c. Inherent and constitutional limitations are not observed.
d. It results to double taxation.

20. The following are similarities of the inherent powers of the state, except one:
a. Are necessary attributes of sovereignty
b. Interfere with private rights and property
c. Superior to the non-impairment clause
d. Are legislative in character

Tax 1 (Income Tax)

Organization and Function of BIR (Title 1 of Tax Code of 1997, as amended by TRAIN LAW)

Memory Test 4

Part 1. Multiple Choice:

1. Which of the following powers and duties of Bureau of Internal Revenue (BIR) is false?
a. Assessment and collection of all national internal revenue taxes, fees, and charges.
b. Enforcement of all forfeitures, penalties, and fines connected with assessment and
collection of taxes.
c. Execute judgements in all cases decided by Court of Tax Appeals and ordinary courts.
d. Give effect to and administer the supervisory and eminent domain power conferred by the
Tax Code or other laws.
2. The organization of BIR comprise of:
a. One Commissioner and 4 Deputy Commissioners
b. One Commissioner and 6 Deputy Commissioners
c. One Commissioner and 5 Deputy Commissioners
d. One Commissioner and 3 Deputy Commissioners

3. Which of the following statement is true?

a. The Commissioner has the power to interpret tax laws subject to review of the President of
the Philippines.
b. The Commissioner has the power to decide disputed assessment, refunds of internal
revenue taxes, fees or charges, penalties imposed in relation thereto, or other tax matters,
subject to exclusive appellate jurisdiction of Regional Trial Courts.
c. The Commissioner has the power to decide disputed assessment, refunds of internal
revenue taxes, fees or charges, penalties imposed in relation thereto, or other tax matters,
subject to exclusive appellate jurisdiction of Court of Tax Appeals.
d. The Commissioner has the power to interpret tax laws but not to decide on tax cases.

4. Any return, statement, or declaration filed in any office authorize to receive the same shall not
be withdrawn: Provided that _________ from the date of such filing, the same shall be modified,
changed, or amended, provided further that no notice of audit or investigation of such return,
statement or declaration has, in the meantime, been actually served upon the taxpayer.
a. Within 2 years
b. Within 3 years
c. Within 4 years
d. Within 1 year

5. What evidence is needed for the Commissioner to assess the tax liability of the taxpayer in case
the latter failed to submit the required returns, statements, reports and other documents or
when there is a reason to believe that such report is false, incomplete or erroneous?
a. Best evidence obtainable
b. Probable evidence obtainable
c. Reliable evidence obtainable
d. Virtual evidence obtainable

6. Jeopardy assessment (termination of taxable period) is necessary under the following

circumstances:
a. The taxpayer is retiring from business subject to tax
b. The taxpayer is intending to leave the Philippines, or removing his property therefrom
c. The taxpayer is hiding or concealing his property
d. All of the above

7. For purposes of computing internal revenue tax, the real property must be valued
a. Fair market value as determined by the Commissioner
 b. Fair market value as determined by the Provincial or City Assessors Office
c. Fair market value under letter a or letter b whichever is higher
d. Fair market value under letter a or letter b whichever is lower

8. The Commissioner has the authority to prescribe real property values subject to limitations set
by the law. Which of the following limitations is invalid?
a. There must be consultation with competent appraisers both from the private and public
sectors, with prior notice to affected taxpayers
b. The adjustment in the FMV of the property must be done once in every three years
through the rules and regulations issued by the Secretary of Finance based on the
current Philippine Standards.
c. The adjustment shall be published in newspaper of general circulation in the province,
city or municipality concerned.
d. In the absence of provision stated under letter c, the adjustment must be posted in the
provincial capitol, city or municipal hall and in three (3) conspicuous public places
therein.

9. The Commissioner can inquire into taxpayers’ bank accounts without violating the Bank Secrecy
Law and Foreign Currency Deposit Act under which of the following reason/s:
a. To determine the gross estate of the decedent
b. To determine the financial incapability of the taxpayer, but a prior approval of the
taxpayer is needed.
c. Foreign tax authority requested for such information
d. All of the above

10. Which of the following statement is false?

a. One who has applied accreditation and denied by the Commissioner, he may appeal
such denial to the Secretary of Finance, who shall rule on the appeal within sixty (60)
days from the receipt of such appeal. Failure of the secretary to rule on the appeal
within the prescribed period shall be deemed as approval of the application for
accreditation of the appellant.
b. The Commissioner may prescribe the manner of compliance with any documentary or
procedural requirement in connection with the submission or preparation of financial
statements accompanying tax returns.
c. The Commissioner shall delegate his powers to his subordinates with the rank
equivalent to a division chief or higher, subject to limitations and restrictions.
d. None of the above.

11. The following powers of the Commissioner shall not be delegated except:
a. The power to recommend the promulgation of rules and regulations by the Secretary of
Finance
b. The power to issue rulings of first impression or to reverse, revoke, or modify any
existing ruling of the Bureau.
 c. The power to assign or reassign internal revenue officers to establishment where
articles subject to excise tax are produced or kept.
d. The power to compromise or abate deficiency tax amounting to P 500,000 or less, and
minor criminal violations.

Part II. (10 pts)

1. Enumerate the powers/ authority of the BIR Commissioner.

Powers of the Commissioner on Internal Revenue

 To interpret tax laws and decide tax cases;

 To obtain information, and to summon, examine and take testimony of persons;

 To make assessments and prescribe additional requirements for tax administration and
enforcement;

 To conduct inventory - taking, surveillance and to prescribe presumptive gross sales and
receipts;

 To terminate taxable period;

 To prescribe real property values;

 To inquire into bank deposit accounts;

 To accredit and register tax agents;

 To prescribe additional procedural or documentary requirements; and

 To delegate power to subordinates.

2. What are the sources of National Internal Revenue Tax?

Powers of the Commissioner on Internal Revenue

 To interpret tax laws and decide tax cases;

 To obtain information, and to summon, examine and take testimony of persons;

 To make assessments and prescribe additional requirements for tax administration and
enforcement;
  To conduct inventory - taking, surveillance and to prescribe presumptive gross sales and
receipts;

 To terminate taxable period;

 To prescribe real property values;

 To inquire into bank deposit accounts;

 To accredit and register tax agents;

 To prescribe additional procedural or documentary requirements; and

 To delegate power to subordinates.

Part III. True or False:

TRUE 1.Revenue Regional Director is allowed or authorized to issue Letter of Authority.

FALSE 2.Revenue Officers have no authority to administer oaths and take testimony in any official
matter or investigation conducted by them regarding any matters within the jurisdiction of the Bureau.

TRUE 3.Revenue Officers have the authority to make arrest or seizures for the violation of the penal
law, rule or regulation administered by the BIR.

FALSE 4.Internal Revenue Officers assigned to perform assessment or collection functions shall not
remain in the same assignments for more than two (2) years.