Solman

INCOME TAXATION 6TH Edition (BY: VALENCIA & ROXAS) SUGGESTED ANSWERS CHAPTER 2

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Chapter 2: Tax Administration

TAX ADMINISTRATION

Problem 2 – 1 TRUE OR FALSE 1. True 2. False – not the BIR, but the Department of Finance 3. False – the BIR is responsible to collect national taxes only. 4. False – The review shall be made by the Court of Justice. 5. True 6. True 7. False – The Secretary of Justice and the Courts also interprets the provisions of the Tax Code. 8. False – the fact that taxes are self-assessing the BIR assessment is necessary to ensure the reliability of the ITR. 9. False – the BIR or the Government is not allowed by law to appeal to the CTA. (Acting

Collector of customs vs. Court of Appeals, Oct. 31, 1957)

10. True 11. False – Appeal to the SC shall be made within 15 days from the receipt of the decision of the CTA. 12. False – the CIR can conduct a jeopardy assessment when there are no accounting records. 13. True 14. False – the taxpayer needs to waive first his right on the secrecy of bank deposits before BIR can inquire into his bank deposits. 15. True Problem 2 – 2 TRUE OR FALSE 1. False – there must be a Letter of Authority. 2. False – the supporting documents must be submitted to the BIR within 60 days from the date a protest is filed. 3. True 4. True 5. False – destraint as a tax collection method is applicable only to personal property. 6. False – criminal violations already filed in court are not subject to compromise. 7. True 8. False, collection must be within 5 years 9. True 10. False-redemption period is within 1 year from date of auction sale. 11. True 12. True Problem 2 – 3 TRUE OR FALSE 1. False – there is no need to pay additional registration fee for transfer of business registration. 2. True 3. False – the initial bond required for manufacturers and importers of articles subject to excise tax is P100,000. 4. False – informer’s reward is subject to 10% final withholding tax. 5. True 6. True 7. True 8. True 9. False –...