TX102 MIDTERM QUIZZES

Tax Remedies
Question 1
Taxpayers are required to prepare and file their own Income Tax Returns
 Quarterly and Annual basis
 Either quarterly or Annual basis
 Annual basis only
 Quarterly basis only

Question 2
The annual individual income tax return for the current taxable year is filed on or before
 January 31 of the following taxable year.
 May 15 of the current taxable year
 April 15 of the current taxable year
 April 15 of the following year

Question 3
For filing a false and fraudulent return, a surcharge is imposed at
 50% surcharge
 12% surcharge
 100% surcharge
 25% surcharge

Question 4
The taxpayer can file a reply to the Pre-Assessment Notice (PAN) within
 30 days from the date of receipt
 15 days from the date of receipt
 30 days from the date of the PAN
 15 days from the date of the PAN

Question 5
Where a return was filed, as a general rule, the prescriptive period for collection after the date
the return was due or was filed, whichever is later, is within
 5 years
 3 years
 10 years
 20 years

Question 6
The Prescriptive period of Assessment is
 Within three years from the date of filing
 Within three years from the date of the actual filing of the return or deadline required by
law, whichever is earlier
 Within three years from the due date
 Within three years from the date of the actual filing of the return or deadline required by
law, whichever is later

Question 7
The taxable year for an individual taxpayer is
 Fiscal year only
 Calendar year only
 Neither Calendar year nor fiscal year
 Either calendar year or fiscal year

Question 8
The taxable year for a corporation is
 Neither calendar year nor fiscal year
 Calendar year only
 Fiscal year only
 Either calendar year or fiscal year

Question 9
The deadline for filing of a second quarter Income Tax Return (ITR) is
 August 15
 April 15
 September 15
 June 30

Question 10
Capital gains tax return on sale of the real properties is due within
 The end of the month
 15 days from the date of sale
 60 days from the date of sale
 30 days from the date of sale

Question 11
The BIR form for the business tax of a non-VAT taxpayer is
 2550Q
 2551Q
 2551M
 2550M

Question 12
The business tax of a VAT taxpayer is filed and/or paid every
 Monthly only
 Monthly and end of each quarter
 Annually
 Quarterly only

Question 13
Estate tax is due within
 One year from the date of death
 Six months from the date of death
 30 days from the date of deatch
 30 days from the date notice of death

Question 14
What is a valid due date a Percentage tax return?
 April 20 for 1st quarter
 Feb. 10 for January percentage tax
 Aug. 25 for 2nd quarter
 April 25 for 1st quarter

Question 15
The BIR form for Letter of Authority (LA) is
 1905
 2303
 1696
 1966

Question 16
The period for investigation is
 120 days from the receipt of LA
 90 days from the date of LA
 120 days from the date of LA
 30 days from the date of receipt of LS

Question 17
The following are imposed by the BIR in addition to the tax deficiency, except
 Interest
 Compromise penalty
 Bail bond
 Surcharge

Question 18
The following are the tax remedies for government, except
 Issuance of eLA
 Arrest a suspected tax evader
 Assessment of tax
 Collection of assessed tax deficiency

Question 19
The government can proceed with the issuance of PAN if the Letter of Authority is not received
by the taxpayer or its authorized representative
False

Question 20
The Preliminary Assessment Notice shall be replied by the taxpayer within a period. If the reply
is not meritorious, then the BIR will issue the FAN.
True

BIR registration, Compliance, Due Dates

Question 1
The taxable year for a corporate taxpayer is
 Fiscal year only
 Either calendar year or fiscal year
 Calendar year only
 Neither Calendar year nor fiscal year

Question 2
The deadline for filing of a second quarter Income Tax Return (ITR) for individuals is
 September 15
 April 15
 June 30
 August 15

Question 3
The BIR form for the business tax of a non-VAT taxpayer is
 2550Q
 2551Q
 2551M
 2550M

Question 4
The business tax of a VAT taxpayer is filed and/or paid every
 Monthly and end of each quarter
 Annually
 Monthly only
 Quarterly only

Question 5
What is a valid due date a Percentage tax return?
 April 20 for 1st quarter
 April 25 for 1st quarter
 Aug. 25 for 2nd quarter
 Feb. 10 for January percentage tax

Question 6
The following are imposed by the BIR in addition to the tax deficiency, except
 Interest
 Surcharge
 Bail bond
 Compromise penalty

Question 7
A taxpayer may claim a rent expense even without withholding and filing 0619E
False

Question 8
1 / 1 pts
The BIR form for the taxpayer’s information is the 2303
True
Correct!
False

Question 9
The BIR form where the tax types and compliances of the taxpayer is the Certificate of
Registration or BIR form 2303
True

Question 10
Salaries expense can be claimed as deduction from income even if the entity did not file 1601C
because all the employees are exempt from tax
False

Question 11
The entity registered as a corporation will file a quartly income tax return. The BIR form used
shall be
 1701Q
 1702
 1700Q
 1702Q

Question 12
A corporation may apply for BIR registration first before applying for Corporate registration with
the SEC
False

Question 13
The quarterly sale of the taxpayer is P1,500,000. The sales tax filed should be
 2551Q
 2551M
 1601C
 2550M

Question 14
A company has ten employees, all of which are receiving an annual gross of less than P250,000.
The company shall file a return for
 1601Q
 Not file WHT on compensation
 1601C
 0619E

Question 15
A corporation has a fiscal year starting on June 1 and end on May 30. The deadline of its annual
income tax return is
 Sept.15 of the same year
 July 31 of the same year
 Aug. 15 of the same year
 April 15 of the following year

Question 16
An individual is practicing his profession. As a registered taxpayer, he has to file his income tax
 Annually
 Ever quarter but not annually
 Optionally if the income is below P250,000
 Every quarter and annually

Question 17
A business providing services is a non-vat registered business. The sales tax for the first quarter
shall be file on
 April 10
 April 30
 April 15
 April 25

Question 18
To minimize taxes, a business may not register as a taxpayer to avoid taxes, then register later if
the government will issue an order to do so.
False

Question 19
Service businesses shall get an authority to print
 Neither O.R nor Sales Invoice
 O.R.
 O.R and Sales Invoice
 Sales Invoice

Question 20
The business shall have have its receipts/invoice printed within
 45 days from date of registration
 60 days from date of registration
 30 days from the date of registration
 15 days from the date of registration

Question 21
A business is paying monthly rent for its store space. The tenant conducting business shall file
BIR form
 0619E for the wht on rent every month
 0619E for the wht on rent every quarter
 1601 for the wht on rent every month
 Need not file for wht on rent

Question 22
All entities whether a sole proprietorship, partnership or corporation need to have a Tax
Identification Number (TIN)
True

Question 23
A business with branches shall have the same TIN on its branch as the head office except for the
extension number for each branch
True

Question 24
The Bureau of Internal Revenue collects taxes of local sale of goods including tax on importation
of goods
False

Question 25
Both the BIR and BOC are under the Department of Finance
True

Question 26
Which among the following choices is not a function of the BIR
 Collect customs duties
 Collect taxes
 Enforce forfeitures in cases decided on its favor
 Assess taxes

Question 27
The Bureau of Customs supervise and control imports and exports, including the clearances of
vessels and aircrafts in all ports of entry in the Philippines.
True

Question 28
A business must get a business/ trade name with DTI and get a business registration with SEC
before registering as a taxpayer with the BIR
False
Question 29
The withholding agent (tenant) for the withholding tax for rent shall issue the BIR form 2307 to
the lessor to be used as a tax credit in the lessor’s income tax filing
True

Question 30
X Trading sold goods to A company on account. X Trading shall issue
 O.R. upon collection
 Sales Invoice upon delivery
 O.R. upon delivery
 Sales Invoice upon collection

Question 31
An individual taxpayer engaged in business had a net loss during the quarter. The taxpayer may
not file a quarterly income tax because there is no tax due anyway.
False

Question 32
The Barangay does not issue a business permit, rather a business clearance used to process a
mayor’s permit.
True

PEZA, BMBE, Microfinance NGO, Senior/ PWD

Question 1
A microfinance NGO is applying to secure a certificate of accreditation. Which among the
following microfinance may not be approved?
 Microfinance borrowing funds to loan out to microfinance borrowers
 Microfinance with equity of P800,000
 Microfinance engaged in low-interest loans to underprivileged
 Microfinance with capital of P5M

Question 2
A senior citizen purchased and incurred the following items:

Medicine (VAT inclusive) P2,072

Transportation – Taxi P200
Cinema (VAT inclusive) P250

How much of the above will be paid by the senior citizen, net of applicable discount and
exemption?
 1,930
 1,890
 2,017.60
 1,818.57

Question 3
A PEZA-registered business had the following for the taxable year 2020:
Sales P400,000,000
Sales discounts P10,000,000
Operating expenses P140,000,000
Cost of Sales P300,000,000

The business was registered on January 1, 2010. How much is the portion of taxes that go to the
local government?
 2.7M
 1.8M
 2M
 4.5M

Question 4
Which among the following services are prohibited for a microfinance NGO?
 Deposits from investors to earn interest income
 Housing microfinance;
 Money transfer and other related remittance services, in partnership with
 Agricultural microfinance;

Question 5
The following are taxable for a BMBE business, except
 Royalties
 Sales tax
 Net income
 Capital gains from sale of stock not traded in the stock market

Question 6
A PEZA-registered business is exempt from the following taxes, except
 Real property taxes
 Income tax during ITH
 Local taxes
 Sales Tax

Question 7
Which among the following is not an exemption of a BMBE
 Paying business tax
 Income tax
 Paying salaries below the minimum wage
 Withholding tax on income

Question 8
The following are requirements for PEZA registration, except
 Employment of workers who are residents of the city where the PEZA is located
 Must be engaged in a qualified activity
 The business must operate in a PEZA location zone
 The business must operate in a PEZA building zone

Question 9
X Company employed several senior citizens. It has incurred the following during the year:
Salaries of senior citizens P200,000
Other employee benefits to senior citizens P50,000

X is entitled to how much deduction from the related senior citizen salaries and benefits for tax
purposes
 250,000
 200,000
 287,500
 230,000

Question 10
A PEZA-registered business had the following for the taxable year 2020:
Sales P400,000,000
Sales discounts P10,000,000
Operating expenses P140,000,000
Cost of Sales P300,000,000

If the entity is engaged in a pioneer project and was registered on January 1, 2014, the total tax
for the year is
 250,000
 4.5M
 0
 5M

Question 11
The gross income for PEZA registered business shall refer to
 Sales less Cost of Sales less operating expenses
 Sales less sales returns, allowances and discounts, less cost of sales less operating
expenses
 Sales less Sales returns, allowances and discounts
 Sales less sales returns, allowances and discounts, allowances less cost of sales

Question 12
Which among the following activities may not qualify as a PEZA activity?
 IT Export service where 80% of the revenue is derived abroad
 Medical tourism where the primary patients are foreigners
 Tourism where the primary visitors are foeigners
 Export manufacturing where 70% of the products go to the domestic market

Question 13
Which of the following will not be exempt from VAT for senior citizens?
 Medicine for hypertension
 Medicine for diabetes
 Domestic flight airplane ticket
 Cosmetic surgery

Question 14
A senior citizen purchased and incurred the following items:
Medicine (VAT inclusive) P2,072
Transportation – Taxi P200
Cinema (VAT inclusive) P250

How much is the total senior citizen discount of the above payments?
 454.64
 410
 504.40
 370

Question 15
A PEZA-registered business had the following for the taxable year 2019:
Sales P400,000,000
Operating expenses P140,000,000
Cost of Sales P300,000,000

The business was registered on January 1, 2010.

The local government charges 1% of gross sales in the previous year as business license fee.
For the year 2020, how much will the local government collect from the PEZA-registered
business for its business license fee?
 4M
 0
 1M
 2M

Question 16
A microfinance NGO had the following transactions during the year:
Microfinance Loan out to clients P10M
Total Collection from loan clients (Principal including interest) P8M
Interest revenue from loan activities P2M

How much is the tax for the microfinance NGO?

 160,000
 40,000
 0
 200,000

Question 17
Which among the following may qualify as a PEZA-registered business
 Retailer of imported products
 Utility company providing electricity and water inside the Special Economic Zone
 Laundry company providing services to PEZA employees
 Construction company based outside the PEZA zone but is providing construction services
inside PEZA.

Question 18
A PEZA_registered business is subject to tax based on
 100% income tax exemption
 5% of gross profit after ITH
 5% of gross profit while under ITH
 5% of net profit

Question 19
A corporation was approved as a Barangay Micro Business Enterprise (BMBE). It has employed
constituents from the locality and uses raw materials available in the Barangay. The following
are available for the taxable year 2019:
Sales P3,000,000
Cost of Sales P1,800,000
Operating expenses P700,000
Building P1,000,000
Equipment P1,400,000
Land where Mfg bldg is located P800,000
Other assets P150,000

The local government charges 1% of the gross sales from the previous year as business license
fee.

How much is the business license fee of the BMBE for the year 2020?
 12,000
 30,000
 60,000
 0

Question 20
A PEZA-registered business had the following for the taxable year 2020:
Sales P400,000,000
Sales discounts P10,000,000
Operating expenses P140,000,000
Cost of Sales P300,000,000

If the entity is engaged in a non-pioneer project and was registered on January 1, 2017, the total
tax for the year is
 0
 5M
 250,000
 4.5M