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TAXATION
REX B. BANGGAWAN, CPA, MBA

TAX REMEDIES
REX B. BANGGAWAN, CPA, MBA
DRILL PROBLEMS
Government Remedies
1. The income tax return must be filed in

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a. Duplicate b. Quadruplicate c. Triplicate d. Quintuplicate
2. Where the return is filed, as a general rule, the prescriptive period for assessment after the date the return was due or
was filed, whichever is later, is within

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a. Three years c. Five years
b. Ten years d. Answer not given

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3. The following are remedies available to the government to collect taxes, except?
a. Distraint and levy
b. Inquiring into bank deposit accounts of taxpayers
c. Entering into compromise of tax cases
d. Enforce forfeiture of property
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4. The CIR may be permitted to inquire into taxpayer’s bank account under which of the following instances?
a. to be able to determine the gross estate of a decedent
b. in acceding to compromise of a taxpayer’s liabilities due to financial inability to pay the tax assessed
c. when information is requested by a foreign tax authority pursuant to an international agreement entered into by
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the Philippines
d. All of these

5. The following are coercive means in the collection of taxes by the BIR, except one.
a. Distraint and levy
b. Seizure of goods on which Government has claim for unpaid taxes
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c. Enforcement of tax lien

d. Compromise

6. The seizure by the government of personal property to enforce payment of taxes followed by a public sale, if taxes
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were not voluntarily paid is called

a. Distraint c. Forfeiture
b. Levy d. Lien

7. A warrant of distraint may be issued against the taxpayer owing delinquent taxes on his
a. Real property c. Bank deposits
b. Personal property d. Property under custodia legis
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8. A warrant of levy may be issued against the taxpayer owing delinquent taxes on his
a. Real property c. bank deposits
b. Personal property d. property under custodial legis.

9. A warrant of garnishment may be issued against the taxpayer owing delinquent taxes on his
a. Real property c. Bank deposits
b. Personal property d. Property under custodia legis

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REX B. BANGGAWAN, CPA, MBA

TAX REMEDIES

10. Alexander filed his 2015 Income Tax Return and paid the tax due thereon on April 1, 2016. The last day for the
Bureau of Internal Revenue to send an assessment is
a. April 1, 2019 c. April 15, 2019
b. April 15, 2021 d. April 15, 2026

11. On February 14, 2017, the BIR discovered that the taxpayer failed to file his return for the calendar year 2015. When
is the last day for the BIR to make an assessment?
a. April 15, 2019 c. April 15, 2025
b. February 14, 2018 d. February 14, 2027

12. A taxpayer filed his Income Tax Return for taxable year 2015 on May 2, 2016. After an investigation, it was discovered

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that the tax paid was deficient. The last day for the BIR to send an assessment is
a. May 2, 2019 c. May 2, 2018
b. April 15, 2019 d. April 15, 2018

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13. The income tax payable (net of withholding tax of P29,500) in the 2015 tax return of a taxpayer is P1,950. The
taxpayer filed the return on April 8, 2016. Assuming the taxpayer paid the balance in the tax return on June 28, 2016,

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the last day for the BIR to make assessment is -
a. June 28, 2019 c. July 15, 2019
b. April 15, 2019 d. April 8, 2019

14. The BIR discovered a deficiency value added tax for the last quarter of 2018. When is the last day for the BIR to make
a deficiency assessment?
a. December 31, 2022
b. December 25, 2022
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c. January 20, 2022
d. January 25, 2022
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15. On March 12, 2023, the BIR discovered a deficiency in the capital gains tax return of the taxpayer due to an apparent
error. The capital gains tax relates to a sale that was made December 15, 2018. Which is correct?
a. The BIR should send a deficiency tax assessment on or before December 15, 2021.
b. The BIR should send a deficiency tax assessment on or before April 15, 2021.
c. The BIR should send a deficiency tax assessment on or before March 15, 2031.
d. The BIR is already barred to assess by prescription.
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16. The BIR discovered a deficiency estate tax on the estate tax return of a decedent who died March 1, 2019. What is
the deadline for the BIR to send assessment notice?
a. April 15, 2022 c. March 1, 2023
b. March 1, 2022 d. March 1, 2030
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17. A taxpayer filed his Income Tax Return for taxable year 2016 on March 20, 2017. Assuming that the return filed is not
false or fraudulent, the last day for the BIR to collect the tax by judicial action if no assessment was made is
a. March 20, 2020 c. April 15, 2020
b. March 20, 2022 d. April 15, 2022
18. A taxpayer fraudulently filed an income tax return for the year 2015 on April 11, 2016. The BIR discovered the fraud
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on February 20, 2017. The last day for the BIR to collect or send an assessment notice is
a. April 11, 2019 c. April 15, 2026
b. April 15, 2019 d. February 20, 2027

19. In the immediately preceding problem, supposed the BIR sent a notice of assessment on the deficiency income tax on
April 4, 2017, the last day for the BIR to collect the deficiency income tax is on
a. April 4, 2022 c. February 20, 2027
b. April 15, 2022 d. April 4, 2027

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REX B. BANGGAWAN, CPA, MBA

TAX REMEDIES

20. Ms. J Cruz filed an income tax return for the calendar year 2016 on March 10, 2017. The BIR issued a deficiency
assessment income tax on April 10, 2018, which has become final. When is the last day for the BIR to collect?
a. April 10, 2023 c. April 15, 2022
b. April 15, 2020 d. March 10, 2020

21. The distinction between actual distraint and constructive distraint is that
a. Actual distraint may be made on the property of any taxpayer whether delinquent or not while constructive
distraint is made on the property only of a delinquent taxpayer
b. In actual distraint, there is a taking of possession, while in constructive distraint, the taxpayer is merely prohibited
from disposing the property
c. Actual distraint is effected by requiring the taxpayer to sign a receipt of the property or by the revenue officer

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preparing and leaving a list of the distrained property or by service of a warrant of distraint or garnishment
d. Answer not given

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22. Which of the following violations cannot be subject to compromise penalties?
a. Failure to keep/preserve books of accounts and accounting records
b. Failure to keep books of accounts or records in a native language or English

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c. Failure to have books of accounts audited and have financial statements attached to income tax return certified by
independent CPA
d. Keeping two sets of books of accounts or records

23. Which of the following statement is not true?

civil liability to pay the taxes

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a. If a taxpayer is acquitted in a criminal violation of the Tax Code, this acquittal does not exonerate him from his

b. A conviction for tax evasion is not a bar for collection of unpaid taxes
c. A tax assessment is necessary to a criminal prosecution for willful attempt to defeat and evade payment of tax
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d. Criminal proceedings under the Tax Code is now a mode of collection of internal revenue taxes, fees and charges

24. The following are administrative remedies available to a taxpayer in connection with collection of taxes, except one
a. Filing of claim for tax refund or credit
b. Filing a petition for reconsideration or reinvestigation
c. Filing for criminal complaints against erring BIR officials or employees
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d. Entering into a compromise

25. Which statement is wrong? The surcharge of 25% is imposed if

a. A tax return was not filed within the time prescribed by law
b. A tax was not paid within the time prescribed by law
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c. A tax return was not filed within the time prescribed by law and at the same time the tax was not paid within the
time prescribed by law
d. None of these

26. Jackie filed her 2021 income tax return and paid the tax shown thereon in the amount of P10,000 on July 15, 2022.
The total amount payable is
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a. P12,799 c. P15,625
b. P12,800 d. P17,500

27. The filing of a false and fraudulent tax return, a surcharge is imposed. Which of the following is correct?
a. 50% as administrative penalty c. 25% plus 50%
b. 50% as criminal penalty d. 25% as criminal penalty

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REX B. BANGGAWAN, CPA, MBA

TAX REMEDIES

28. Miss Paladin filed her 2020 income tax return and paid the tax thereon in the amount of P100,000 on July 15, 2021.
How much is the total penalties in the form of interest collectible from her?
a. None c. P7,500
b. P6,250 d. P5,000

29. An individual taxpayer has filed his 2020 income tax return on April 10, 2021 and paid P120,000 tax due per his
return. The BIR determined that the actual amount of tax was P150,000. The BIR assessed the deficiency tax and
was due on October 15, 2022. If the taxpayer settles the obligation on October 15, 2022, how much is the amount of
payment
a. P39,000 c. P37,500
b. P46,500 d. P30,000

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30. In the immediately preceding problem, if the deficiency tax was paid on December 15, 2022, the total amount payable
is

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a. P39,000 c. P48,750
b. P40,300 d. P50,050

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31. Aladdin filed his income tax return for 2021 and paid the tax thereon on March 15, 2022. On May 10, 2022, the BIR
enforcement officer with letter of authority examine his tax return for 2020 visited him. He accommodated the BIR
examiner and after the examination of his accounting records, it was found out that he was still liable for a deficiency
income tax of P40,000 which he agreed. On June 15, 2022, he received a notice and demand for payment of the said
deficiency tax within 1 month thereof. Aladdin paid the assessment on October 15, 2022. How much total interest did

b. P4,600
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Aladdin pay on account of his deficiency and delinquency?
a. P4,000 c. P4,625
d. P4,100
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32. The books of accounts must be kept in
a. English language only c. Any language depending on the preference of the taxpayer
b. Native language or English only d. Native language, English or Spanish

33. Which of the following criminal acts for violation of the Tax Code is subject to both fine and imprisonment?
a. Making false entries, records and reports or certification
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b. Unlawful pursuit of business without paying the privilege tax required for business
c. Willful attempt to evade or defeat in any manner any tax under the Code and willful failure to pay a tax, make a
return, supply correct and accurate information, withhold and remit taxes withheld
d. All of the above
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34. In which of the following cases where the civil penalties of 25% or 50% imposed by the Tax Code is not applicable?
a. In case a false or fraudulent return is willfully made
b. Failure to pay the full amount of the tax shown on any return required to be filed under the law
c. Failure to file certain information required by the tax code
d. Failure to file or willful neglect to file the tax return within the period prescribed by law
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35. The Commissioner of Internal Revenue cannot

a. Abate or cancel tax liability
b. Compromise payment of internal revenue taxes
c. Credit or refund taxes erroneously or illegally collected
d. Compromise criminal aspect of tax violations if already filed in court

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REX B. BANGGAWAN, CPA, MBA

TAX REMEDIES

Taxpayer’s Remedies
36. A taxpayer filed a VAT return on May 10, 2021. On May 20, 2022, he received an assessment from the BIR. The last
day for him to file a request for reinvestigation is
a. April 15, 2024 c. June 20, 2022
b. April 14, 2024 d. June 19, 2022

37. A taxpayer filed an Income Tax Return on March 28, 2019. An assessment was issued by the BIR on June 20, 2021.
The taxpayer made a request for reinvestigation on July 4, 2021.

The last day to submit relevant supporting documents is

a. September 4, 2021 c. September 2, 2021

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b. July 20, 2021 d. April 15, 2022

38. Assuming that the taxpayer has submitted the documents supporting his motion on August 26, 2021. The BIR should

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act on the protest not later than
a. September 26, 2021 c. February 26, 2021
b. April 15, 2022 d. February 22, 2022

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39. Assuming the BIR did not act on the protest, the last day for the taxpayer to appeal to the Court of Tax Appeals is
a. March 22, 2021 c. March 23, 2022
b. March 24, 2022 d. April 15, 2023

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40. An income tax return was filed on May 12, 2019. The taxpayer received an assessment of deficiency income tax on
October 10, 2020. Protest was filed on October 30, 2020 and the supporting documents were submitted on December
5, 2020. The protest was denied on April 20, 2021. The last day to appeal the decision of the BIR to the Court of Tax
Appeals is
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a. June 4, 2021 c. May 19, 2021
b. May 20, 2021 d. June 20, 2021

41. Where any national internal revenue tax is alleged to have been erroneously or illegally collected the taxpayer should
first
a. File a claim for refund or credit c. File an action for refund with the CTA
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b. File an action for refund with the RTC d. Answer not given

42. A taxpayer filed his 2019 Income Tax Return and paid the tax due thereon on April 1, 2020. In case of overpayment,
the last day to file claim for refund is on
a. April 1, 2022 c. April 1, 2023
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b. April 15, 2022 d. April 15, 2025

43. On April 15, 2020, a tax was erroneously paid by a taxpayer. On February 18, 2021, a claim for tax refund was filed
with the BIR. On March 5, 2022, a BIR decision of denial was received. The last day to appeal to the Court of Tax
Appeals is
a. April 4, 2022 c. April 5, 2022
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b. April 4, 2021 d. April 15, 2022

44. Date of tax erroneously paid June 10, 2020

Date of claim for refund was filed with BIR March 3, 2022
Date of BIR decision of denial was received June 5, 2022

The last day to appeal to the Court of Tax Appeals is

a. March 3, 2022 c. June 10, 2022
b. April 4, 2022 d. July 5, 2022

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REX B. BANGGAWAN, CPA, MBA

TAX REMEDIES

45. Juan dela Cruz paid excessive tax on April 15, 2019. On December 20, 2020, she filed a written claim for refund. Her
claim was denied by the BIR and she received the denial on March 20, 2021. Juan dela Cruz filed a motion for
reconsideration with the BIR on March 31, 2021. On April 18, 2021, she received the final decision of the BIR. What
will be the taxpayer’s remedy?
a. File another motion for reconsideration with the BIR within 30 days after the receipt of the final decision
b. File an appeal with the CTA within 30 days after the receipt of the final denial
c. File an appeal with the CTA within 15 days after the receipt of the final denial
d. The taxpayer has no more remedy against the final decision

46. Date when assessment was received 12/25/19

Petition for reconsideration was filed with BIR 01/23/20

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Decision of denial was received 07/02/20
Second request for reconsideration was filed with BIR 07/14/20
Date of BIR revised final assessment was received 07/27/21

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Last day to appeal to the Court of Tax Appeals is on
a. July 15, 2021 c. August 27, 2021

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b. August 14, 2021 d. September 28, 2021

47. Assuming the same data in the preceding problem except that the second request was denied, when is the last day to
appeal to the Court of Tax Appeals?
a. July 15, 2021 c. August 17, 2021
b. July 22, 2021
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d. August 18, 2021

48. Vanessa filed her income tax return for 2019 on April 15, 2020 and paid the tax of P12,000. Upon audit by the BIR an
assessment notice was issued on May 2, 2022 requiring Vanessa to pay a deficiency tax of P50,000, not later than
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July 15, 2022. Vanessa may
a. Go to the Supreme Court if the issues involved are pure questions of law
b. Ignore the assessment as the date of collection is beyond 3 years as the taxable year covers 2019
c. Request for an extension of time to pay the deficiency income tax
d. Go to the CTA to appeal the assessment made by the BIR
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49. On March 1, 2022, ABC Company received an assessment from the BIR. The assessment stemmed from a gross
understatement of income by 40% in the 2014 income tax return. What remedies should ABC do?
a. Ignore the assessment as it is already beyond the prescriptive period of assessment
b. File a petition for review before the CTA April 1, 2022
c. File a motion for reconsideration before March 31, 2022
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d. File a motion for reinvestigation before March 31, 2022

50. In the immediately preceding problem, what if the assessment stemmed out of an apparent error in the tax return for
the year 2014?
a. Ignore the assessment as it is already beyond the prescriptive period of assessment
b. File a petition for review before the CTA April 1, 2022
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c. File a motion for reconsideration before March 31, 2022

d. File a motion for reinvestigation before March 31, 2022

51. Juan dela Cruz filed Form 1700 for the taxable year. In July 2020, he received an income tax refund of P9,000, plus
interest of P100, for overpayment of 2019 income tax. What amount for the tax refund and interest is taxable in Juan’s
2016 income tax return?
a. P 0 c. P9,000
b. P100 d. P9,100

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REX B. BANGGAWAN, CPA, MBA

TAX REMEDIES

52. Assuming the same data in the preceding problem except that the tax and interest refund were from BIR Form 1701,
what amount of tax and or interest refund is taxable?
a. P 0 c. P9,000
b. P100 d. P9,100

53. Which of the following cases falls within the Jurisdiction of the Court of Tax Appeals?
a. Criminal action for violation of the NIRC
b. Questions of whether or not to impose a deficiency tax assessment upon a taxpayer
c. Appeal from undisputed tax assessment
d. Appeal for refund of real property tax

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