Chapter 2-3 True or False

Write True if statement is correct, or False if the statement is incorrect

1.Criminal tax violation filed in courts may be compromised.

2.Any internal revenue tax, which has been assessed within the prescribed limitation period, may be collected by distraint or levy, or by a proceeding in court within 5 yrs following assessment of tax.

3.The prescriptive period for collection of tax shall be made within three (3) years from the time the final assessment was released.

4.The National Government is allowed to purchase property under distraint if the amount of bid is substantially lower than the actual cost of the said property

5.After one year from the date of sale of real property under levy, the delinquent tax payer may redeem the property sold

6.The levy may be repeated until the full amount due, including all expenses is collected

7.Delinquent accounts may be compromised, however withholding tax cases, in general are not subject to compromise

8.The transfer of business place during the year will require registration and additional registration fee

9.The estate must secure its own TIN, as a taxpayer separate from its owner

10.The required initial bond for manufacturers and imposters of articles to excise tax is P200,000

11.The informer's reward is subject to a 10% creditable withholding tax.

12.Jeopardy assessment requires tax audit and shortens the taxpayer's period.

13.Once a taxpayer is served with a LA originating from National Office, he should first verify or check with the BIR's National Office whether he is listed or not for National Office Audit.