QUIZ: TAX REMEDIES PART 1 d.

Court of Tax Appeals

e. Supreme Court
1. Which is not an administrative remedy
available to a taxpayer in connection with the 6. In case of an assessment of a tax
collection of taxes? a. The assessment shall be made within 3 years
a. Filing a criminal complaint against erring BIR from the date the return is due
officials and employees b. The assessment shall be made within 3 years
b. Filing a claim for tax refund or credit from the date of filing the return
c. Entering into a compromise agreement c. The protest must be made on time,
d. Filing a petition for reconsideration or otherwise the assessment becomes final and
reinvestigation executory
d. The protest may be filed at any time before
2. The CIR may refund a tax even without a the BIR collects the tax
claim for refund from the taxpayer where on
the face of the return upon which the payment 7. Upon receipt of the formal letter of
was made, such payment appears to have been demand/final assessment notice (FLD/FAN), a
erroneously paid. taxpayer needs to submit a letter protest in
True response to the said FLD/FAN within the
False required deadline, otherwise the assessment
3. When 2 years are about to expire from the becomes final and executory.
date of payment and no decision has yet been List down the two types of protest that a
received by the taxpayer on his claim for refund taxpayer may file in response to the FLD/FAN:
for erroneously paid taxes filed with the BIR, the Answer for blank # 1: Request for
taxpayer may already appeal to the Court of Tax reconsideration
Appeals even without waiting for the decision Answer for blank # 2: Request for
of the BIR on his claim for refund. reinvestigation
True 8. It is the official action of an administrative
False officer in determining the amount of tax due
4. When a return was filed, as a general rule, from a taxpayer, or it may be a notice to the
the prescription period for assessment after the effect that the amount stated therein is due
date the return was due or filed, whichever is from the taxpayer with a demand for payment
later, is within ___ years. of the tax or deficiency stated therein.
Answer: 3 years a. Tax assessment
b. Tax investigation
5. When a national internal revenue tax is c. Tax mapping
alleged to have been illegally collected or d. Tax audit
erroneously paid, as a remedy, the taxpayer
should first file an action for refund with the: 9. The Commissioner of Internal Revenue may
a. Bureau of Internal Revenue compromise any internal revenue taxes in the
b. Tulfo following instances, except:
c. Court of Appeals
a. The financial position of the taxpayer received both a preliminary assessment notice
demonstrates a clear inability to pay the (dated December 27, 2017) and a final
assessed tax assessment notice (dated January 7, 2018) on
b. Taxpayer failed to elevate to the CTA the January 14, 2018. The taxpayer did not file an
adverse decision of the BIR and there is reason administrative protest.
to believe that the assessment is lacking in In 2021, the taxpayer argued that the FAN is
legal/factual basis. void since it received both the PAN and
c. The tax or any portion thereof appears to be FLD/FAN on the same date. Is the taxpayer
unjustly or excessively assessed. correct?
d. The taxpayer has been declared by any
competent
tribunal/authority/body/government agency as a. No, the FAN has become final and executory
bankrupt or insolvent since the taxpayer failed to file an
e. A reasonable doubt as to the validity of the administrative protest within the deadline for
claim against the taxpayer exists filing such protest after receipt of the FAN.
b. No, as long as the factual and legal bases of
10. Zander Ford Corporation was issued a the assessment are contained in the FAN is
Formal Letter of Demand/Final Assessment similar to that reflected in the PAN, then the
Notice (FLD/FAN) for payment of its alleged FAN should be valid.
deficiency taxes plus surcharge, interest and c. None of the choices is correct.
compromise penalties through a duly d. Yes, the issuance of the FAN prior to the
authorized agent bank within the time shown in lapse of the certain number of days from the
the enclosed assessment notice. However, the date of receipt of the PAN is a violation of the
due date in the enclosed assessment notice was taxpayer's right to due process.
left blank.
Was the FLD/FAN valid? 12. All criminal violations may be compromised:
I. Except those filed in court
a. No. For tax assessments to be valid, it must II. Except those involving tax fraud
contain not only a computation of tax liabilities a. True, false
but also a demand for payment within a b. False, false
certain period. c. False, true
b. Yes. The absence of a due date in the d. True, true
FLD/FAN is a minor defect that can be easily
corrected by returning the same to the BIR 13. A compromise for a tax liability on the
office which issued it. ground of financial incapacity to pay shall still
c. None of the above choices are correct. involve a payment of tax from the taxpayer at a
d. Yes. A tax assessment is valid as long as it is minimum compromise rate of
sent to and received by the taxpayer within the a. 30% of the basic assessed tax
prescriptive period. b. 40% of the basic assessed tax
c. 10% of the basic assessed tax
11. Travelling Man, Inc. was assessed by the BIR d. 20% of the basic assessed tax
for deficiency taxes for the taxable year 2016. It
14. A compromise for a tax liability on the
ground other than the financial incapacity to
pay shall involve a minimum compromise rate
of
a. 30 % of the basic assessed tax
b. 20 % of the basic assessed tax
c. 10 % of the basic assessed tax
d. 40 % of the basic assessed tax

15. Which among the following circumstances

negates the prima facie presumption of
correctness of a BIR assessment?
a. Proof that the assessment is utterly without
foundation, arbitrary, and
capricious.
b. The BIR did not include a formal letter of
demand to pay the alleged
deficiency.
c. The BIR assessment was seasonably protested
within 30 days from receipt.
d. No preliminary assessment notice was issued
prior to the assessment notice.