FAR EASTERN UNIVERSITY
INSTITUTE OF ACCOUNTS, BUSINESS, and FINANCE
TAX1101
MIDTERM EXAMINATION
NAME : DATE :
SECTION : SCORE : ______ / 40
Part 1 – MODIFIED TRUE or FALSE1 (10 points)
Write TRUE if the statement is TRUE. If the statement is FALSE, write FALSE and explain why.
1) The Commissioner of Internal Revenue can delegate the power to compromise or abate tax liability.
2) The BIR is under the control and supervision of the Commissioner of Internal Revenue.
3) The Commissioner of Internal Revenue may prescribe presumptive gross sales and receipts for a taxpayer when the
latter fails to issue receipts and when he believes that the books or other records of the latter do not correctly reflect
declarations in the return.
4) Jurisdiction is the power and authority of the court to hear, try, and decide a case. It can also refer to territory.
5) The three fundamental powers of the state may be exercised by the government and public service corporations or
entities.
6) A subpoena duces tecum is used to compel the production of books, records or other documents specified therein.
7) International comity connotes courtesy between nations.
8) A court is one with original jurisdiction when actions or proceedings are first filed with it.
9) In case of ambiguity, tax laws shall be interpreted liberally in favor of the government, and against the taxpayer.
10) Police Power domain involves confiscation of prohibited commodities to protect the well–being of the people.
Part 2 – IDENTIFICATION (10 points)
Determine the word or phrase defined, described or needed in each statement.
1) Marcelito, a Filipino professional singer, was engaged to guest in different television shows in various countries
around the world during the current taxable year. He stayed abroad most of the time during the year. Classify
Marcelito as a taxpayer.
2) An alternative form of obtaining funds from the public, other than deposit, through the issuance, endorsement, or
acceptances of debt instruments for the purpose of relending or purchasing or receivables and other obligations.
3) A person formally certified by a professional body belonging to a specific profession by virtue of having completed a
required course of study or practice, whose competence can usually be measured against an established set of
standards.
