TAX- per TOS - iCPA
The official action of an officer authorized by law in ascertaining the amount of tax due under
the law from a taxpayer is
A. Assessment
B. Distraint
C. Delinquency
D. Deficiency ✔✔A
Which is wrong? Deduction for transfers for public purposes:
A. Means device in a last will and testament to the government.
B. Will not include legacies to charitable institutions.
C. Means legacy in a last will and testament to the government.
D. Includes any kind of transfer to the government for public purposes. ✔✔D
When Rikka died, he left an estate valued at P3,000,000. His heirs spent P300,000 for all the
funeral services rendered by Loyola Memorial Chapel, including the expense attendant to the
wake, the coffee, cremation services and the urn where his ashes were placed. P120,000 out of
the P300,000 funeral expenses were shouldered by friends and relatives. Which among the
following amounts may be deducted from his gross estate for funeral expenses?
A. 200,000
B. 150,000
C. 180,000
D. None of the choices ✔✔B
In "Operation Kandado," the BIR temporarily closed business establishments, including New
Dynasty Corporation that failed to comply with VAT regulations. New Dynasty contends that it
should not be temporarily closed since it has a valid and existing VAT registration, if faithfully
issued VAT receipts, and filed the proper VAT returns. The contention may be rejected if the BIR
investigation reveals that
A. The taxpayer deliberately filed a false and fraudulent return with deliberate intention evade
taxes
B. The taxpayer used falsified documents to support its application for refund of taxes
C. The taxpayer has not been regularly filing its income tax returns for the past 4 years
, D. There was an understatement of taxable sales on receipts by 30% or more for the taxable
quarter ✔✔D
A non-payment of a tax has a civil liability (payment of the tax) and a criminal liability (fine
and/or imprisonment).
(I)A civil case has to be filed in court apart of a criminal case to be filed in court.
(II)A case filed with the Court of Tax Appeals covers both the civil and criminal aspects of the
case.
A. True, true
B. False, false
C. False, true
D. True, false ✔✔C
Mr. A sold property on installment terms on June 5, 2015. The property had a cost of 100,000.
The selling price was 400,000. The payments on the selling price were 50,000 on the date of
sale and 50,000 every year thereafter. The asset sold was capital asset held for two years.
Within the year, he sold another capital asset held for ten months at a loss of 10,000.
The net capital gain for the year if the gain on the sale is to be reported on the installment
method:
A. 37,500
B. 8,750
C. 18,750
D. 27,500 ✔✔B
In a deferred payment sale of property, where income cannot be reported on the installment
method because the initial payments exceed twenty-five percent (25%) of the selling price,
income may be reported on the deferred payment method. Which of the following statements
is not true under the deferred payment method of reporting income?
A. The obligations of the buyer shall be given their equivalent in cash.
B. In subsequent year/s of collections: cash collected, less its equivalent in cash reported in the
year of sale, equals gross income.
C. The income is computed each time a collection is made.
D. In the year of sale, cash received, plus equivalent in cash of the buyer's obligations , less the
cost of the property, equals gross income. ✔✔C
The official action of an officer authorized by law in ascertaining the amount of tax due under
the law from a taxpayer is
A. Assessment
B. Distraint
C. Delinquency
D. Deficiency ✔✔A
Which is wrong? Deduction for transfers for public purposes:
A. Means device in a last will and testament to the government.
B. Will not include legacies to charitable institutions.
C. Means legacy in a last will and testament to the government.
D. Includes any kind of transfer to the government for public purposes. ✔✔D
When Rikka died, he left an estate valued at P3,000,000. His heirs spent P300,000 for all the
funeral services rendered by Loyola Memorial Chapel, including the expense attendant to the
wake, the coffee, cremation services and the urn where his ashes were placed. P120,000 out of
the P300,000 funeral expenses were shouldered by friends and relatives. Which among the
following amounts may be deducted from his gross estate for funeral expenses?
A. 200,000
B. 150,000
C. 180,000
D. None of the choices ✔✔B
In "Operation Kandado," the BIR temporarily closed business establishments, including New
Dynasty Corporation that failed to comply with VAT regulations. New Dynasty contends that it
should not be temporarily closed since it has a valid and existing VAT registration, if faithfully
issued VAT receipts, and filed the proper VAT returns. The contention may be rejected if the BIR
investigation reveals that
A. The taxpayer deliberately filed a false and fraudulent return with deliberate intention evade
taxes
B. The taxpayer used falsified documents to support its application for refund of taxes
C. The taxpayer has not been regularly filing its income tax returns for the past 4 years
, D. There was an understatement of taxable sales on receipts by 30% or more for the taxable
quarter ✔✔D
A non-payment of a tax has a civil liability (payment of the tax) and a criminal liability (fine
and/or imprisonment).
(I)A civil case has to be filed in court apart of a criminal case to be filed in court.
(II)A case filed with the Court of Tax Appeals covers both the civil and criminal aspects of the
case.
A. True, true
B. False, false
C. False, true
D. True, false ✔✔C
Mr. A sold property on installment terms on June 5, 2015. The property had a cost of 100,000.
The selling price was 400,000. The payments on the selling price were 50,000 on the date of
sale and 50,000 every year thereafter. The asset sold was capital asset held for two years.
Within the year, he sold another capital asset held for ten months at a loss of 10,000.
The net capital gain for the year if the gain on the sale is to be reported on the installment
method:
A. 37,500
B. 8,750
C. 18,750
D. 27,500 ✔✔B
In a deferred payment sale of property, where income cannot be reported on the installment
method because the initial payments exceed twenty-five percent (25%) of the selling price,
income may be reported on the deferred payment method. Which of the following statements
is not true under the deferred payment method of reporting income?
A. The obligations of the buyer shall be given their equivalent in cash.
B. In subsequent year/s of collections: cash collected, less its equivalent in cash reported in the
year of sale, equals gross income.
C. The income is computed each time a collection is made.
D. In the year of sale, cash received, plus equivalent in cash of the buyer's obligations , less the
cost of the property, equals gross income. ✔✔C
