income taxation

TRUE OR FALSE:

1. Only the State can exercise the inherent powers.

2. Taxation is the process by which the Bureau of Internal Revenue levies and collects taxes for use

to defray public expenditures.

3. A person may refuse to pay tax on the ground that he will receive no benefit from it.

4. Bayanihan to Recover as One Act was enacted into law exempting the frontliners on their

additional allowance/compensation related to their function. In case of doubt in application, the

interpretation will be most likely in favor of the frontliner.

5. Tax is a voluntary fee levied by the State.

6. No person will be imprisoned for non-payment of tax.

7. Taxes are imposed only for purposes of raising revenues.

8. The Commissioner of Internal Revenue has the power to impose taxes upon businesses.

9. Situs is the place or jurisdiction of taxation.

10. The purpose of requiring payments for applications of license is revenue generation.

11. Any taxpayer can use either calendar or fiscal year provided that it is consistently applied in

accordance with the Accounting standards and that change in accounting period can only be

made upon prior approval by the Commissioner or his authorized representative.

12. The Supreme Court of the Philippines has the power to review the interpretation made by the

Commissioner on a provision of a tax law.

13. The Independent CPA can invoke the accountant-client privilege in case a client is audited by BIR.

14. The Commissioner or his authorized representative cannot force a taxpayer to produce his

records especially during pandemic.

15. The BIR assessment is void if the same is made without the benefit of a notice of audit (e-Letter

of Authority).

16. A taxpayer is allowed to amend his duly filed returns at his discretion.

17. An accountant or Independent CPA may be issued a sub poena by the BIR.

18. The BIR Commissioner has the unbridled power to review bank deposits of taxpayers.

19. The BIR Commissioner can promulgate rules and regulations for the effective implementation of

a tax law.

20. The President of the Philippines has the power to enter into a compromise settlement of tax

liabilities in behalf of the BIR