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Final Exams R2 2022
Final Exams R2 2022
COLLEGE OF LAW
Sta. Mesa, Manila
INSTRUCTIONS:
1. Answer the questions briefly and concisely with legal reasons.
2. Answer sheets must be submitted not later than 5 PM,
December 15, 2022, Late submission will not be considered.
3. Should your answer sheet consist of more than one page, be sure to
write your name on every page of your answer sheet.
4. The format of your answer sheet should be: SHORT BOND PAPER;
FONT -14; SINGLE SPACE; LEAVE TWO SPACES BETWEEN YOUR
ANSWER; LEFT AND RIGHT MARGINS – ONE INCH EACH.
REMINDER: You are future lawyers and integrity is the most important
virtue of a lawyer. Integrity is honesty even when no one is looking
and despite everyone else is doing otherwise.
_______________________________________________________________
2. The NIRC provides that no complaint, civil and criminal, can be filed
against a taxpayer without the approval of the CIR.-false
4. A tax ordinance takes effect after completion of its publication for three
(3) consecutive weeks in a newspaper of local circulation.- False Ordinance
shall take effect upon its approval, fifteen (15) days after its publication in a newspaper of
local circulation. he SC modified the CA decision by directing the Tubigon
municipal council to publish the tax ordinances for a period of three days in
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a publication widely circulated within its jurisdiction or post them at the local
legislative hall and two other conspicuous places within the town. Tubigon
Case
9. The CIR has the power to fix real property values.- TRUE While the CIR has
the authority to prescribe real property values and divide the Philippines into zones, the law is
clear that the same has to be done upon consultation with competent appraisers both from the
public and private sectors. It is undisputed that at the time of the sale of the subject properties
10. In indirect taxes, the liability on the tax can be shifted to the purchaser
or end-user.
-true
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Question No. 1:
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What are the requisites of a valid tax?
REQUISITES OF A VALID
TAX
(1) for a public purpose
(2) rule of taxation should be
uniform
(3) the person or property
taxed is within the
jurisdiction of the taxing
authority
(4) assessment and collection
is in consonance
with the due process clause
(5) The tax must not infringe
on the inherent
and constitutional limitations
of the power
of taxation
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Question No. 2:
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Discuss the concept of “tax benefit principle”. When is this principle
applicable?
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Question No. 3:
In its Answer, BTS Corp. argued that it did not receive any final
assessment notice. It only received a reminder letter from the CIR. Thus,
absence an assessment notice, the case filed has no basis and should be
dismissed. The CIR contended that BTS Corp. received FAN which
contained the computation of its tax liabilities, the facts and the law upon
which the assessment was based; and the same complied with the
requirements of a valid tax assessment.
If you were the Court of Tax Appeals, how will you rule on the
contentions of the parties?
. If the taxpayer denies having received an assessment from the BIR, it then
becomes incumbent upon the latter to prove by competent evidence that such notice
was indeed received by the addressee. The onus probandi has shifted to the BIR to
show by contrary evidence that GJM indeed received the assessment in the due
course of mail. It has been settled that while a mailed letter is deemed received by the
addressee in the course of mail, this is merely a disputable presumption subject to
contravention, the direct denial of which shifts the burden to the sender to prove that
the mailed letter was, in fact, received by the addressee.
While it is true that an assessment is made when the notice is sent within the
prescribed period, the release, mailing, or sending of the same must still be clearly
and satisfactorily proved. Mere notations made without the taxpayer's intervention,
notice or control, and without adequate supporting evidence cannot suffice. Otherwise,
the defenseless taxpayer would be unreasonably placed at the mercy of the revenue
offices.
2. The BIR failed to prove with competent evidence GJM's receipt of the
assessment, leads to no other conclusion but that no assessment was issued.
Consequently, the government's right to issue an assessment for the said period has
already prescribed. The assessment for deficiency DST is cancelled.
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Question No. 5:
Viral Corp. received FLD/FAN dated June 15, 2021 of its tax liabilities
for the taxable year 2011. Viral filed a timely protest to the said assessment
pleading prescription. In its Answer, the CIR claimed that its right to assess
had not yet prescribed because the 2011 income tax return filed by Viral
was false and fraudulent for its alleged intentional failure to reflect its true
sales. The CIR presented a tip from an insider as proof thereof. Has the
period of assessment prescribed?
The Statute of Limitations refers to the period during which the BIR can
assess and collect taxes. Under the Tax Code, the BIR has three (3) years to
conduct an assessment reckoned from the last day prescribed by law for the
filing of the return or from the day the return was filed, whichever is later. In case
of a false or fraudulent return with intent to evade tax or of failure to file a return,
the prescriptive period is extended to ten (10) years counted from the time the
falsity, fraud or omission is discovered. For the collection of taxes, Section 222 of
the Tax Code generally provides for a 5-year prescriptive period.
Question No. 6:
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Question No. 7:
In its 2016 Income Tax Return, Danara Net Inc. (“Danara”) expressly
signified that it will claim as tax credit its creditable withholding tax (CWT)
of P1.2M for taxable year 2016 to be claimed as tax credit in taxable year
2017. However, due to its net-loss position in 2017, Danara was unable to
claim the P1.2M as tax credit. On April 12, 2019, the taxpayer filed with BIR
a written claim for the refund of the P1.2M unutilized CWT for taxable year
2017. Is the taxpayer entitled to a refund of the CWT?
Irrevocalbility principle
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Question No. 8:
Cite a constitutional provision and explain how it affects the exercise of the
power of taxation.
T
he payment of license fees for the
distribution and sale of bibles suppresses the
constitutional right of free exercise of religion.
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prior restraint to the exercise thereof. In this
case, the business permit is a prior restraintØ to the exercise of one's religion since the
constitutional guaranty of the free exercise and enjoyment of religious profession and
worship carries with it the right to disseminate religious information.
Ø It is one thing to impose a tax on the income or property of a preacher, and
another to exact a tax for him for the privilege of delivering a sermon.
Ø The power to tax the exercise of a privilege is the power to control or
suppress its enjoyment
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