Name: Jorneil M. Aguto Subject: Tax I 1. 2. 3. 4. 5. FALSE FALSE FALSE TRUE TRUE II 1. A.

The appeal is valid even in the absence of a prior protest. A clear reading of the Formal Letter of Demand with Assessment Notice will show that the same is already the final decision or determination of the BIR Commissioner. The used of the phrase THIS IS OUR FINAL DECISION supports such argument. Thus, even if I will file a protest before the Commissioner, the same will only be useless because the latter had already made a final determination on the matter. Furthermore, Estoppel, on the part of the BIR Commissioner, already sets in. The notice itself provides that the only remedy I have, to question the said assessment, is to appeal it within 30 days from receipt thereof and not to file a protest. B. The appeal is premature, hence, dismissible. Under the law, protest must first be filed before an appeal is made. What is appealable is the decision of the Commissioner on the protest and not the assessment or the formal demand letter itself. In the case at bar, X failed to file an administrative protest. Hence, there no appeal to speak of considering that no decision was rendered by the BIR Commissioner since no protest was filed by X. C. I will sustain the appeal. This case falls under the exception where protest is required. This is because estoppel already sets in against the BIR Commissioner. If X did not file a protest, it is the Commissioner himself who should be blame. The language of the Assessment notice is clear that the remedy of X is to appeal the said final decision and not to file a protest. X only followed what was instructed to him by the BIR Commissioner in the Assessment Notice.

2.

DISTRAINT is a remedy whereby the collection of tax is enforced on personal property such as goods, chattels, or effects of the taxpayer including other personal property of whatever character as well as stocks and other securities, debts, credits, bank accounts, and interest in and right to personal property. Levy, on the other hand, refers to the seizure of real properties (such as land, building etc.) and interest in or rights to such properties for the satisfaction of taxes due from the delinquent taxpayer. Levy can be made before, simultaneously, or after the distraint of personal property.

3.

The following are the remedies for the collection of taxes: 1. 2. Distraint remedy whereby the collection of tax is enforced on personal property; Levy remedy whereby the collection of tax is enforced on real property;

3.

Civil action is resorted to when a tax liability becomes collectible. This is done by filing a complaint for collection of sum of money;

4. 5.

Criminal action this is done by filing a criminal case for violating the tax code. Compromise it is an agreement between two or more persons who, in order to avoid a lawsuit, amicably settle their differences on such terms as they can agree on. Forfeiture taxpayers property is seized and the same will be sold and the proceeds thereof will go to the government. Civil penalties imposition of penalty in addition to the tax required to be paid. III

6.

7.

1. 2. 3. 4. 5.

d c a c b 5.a As a general rule NO, but in exceptional cases the Supreme Court can issue a writ of injunction when a taxpayer has shown a clear and unmistakable right to refuse or to hold in abeyance the payment of taxes as when there is urgency and paramount necessity for the issuance of a writ. (Talento v. Escalada, Jr., 556 SCRA 491) 5.b As a general rule NO, but under Section 11 of RA 9298 the Court of Appeals, not the Supreme Court, may suspend the collection of taxes.

6.

a. Tax evader refers to the person who was convicted, by final judgment, of tax evasion. b. Taxpayers suit refers to the standing or right of a taxpayer to file a petition questioning the validity of a tax law. It requires, however, the illegal expenditure of public money. c. Assessment is a notice given to the taxpayer which contains the computation of tax liabilities and the demand for the payment thereof within a prescribed period. d. Tax lien is a legal claim on a property which serves as a security for the payment of tax obligations. e. bonus.

7.

Tax refund and tax credit may be distinguished as follows: 1. In tax refund, there is actual reimbursement of the tax while in tax credit, the reimbursable amount is applied against the sum that may be due or collectible from the taxpayer. The following are the requisites for tax refund or credit: 1. There must be a written claim for refund filed by a taxpayer with the commissioner. 2. The claim must be a categorical demand for reimbursement. 3. The claim must be filed within 2 years from the date of payment.