Accounting Records Preservation and TIN Quiz

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Questions and Answers

What is the minimum height for letters on the sign that a distiller must display outside their place of business?

7 centimeters

6 centimeters (correct)

4 centimeters

5 centimeters

Which phrase is NOT required on the sign of a wholesale liquor dealer?

Rectifier of Spirits

Wholesale Liquor Dealer

Certified Manufacturer (correct)

Registered Distiller

In which location must a certificate or receipt showing payment of taxes be displayed?

Conspicuously at the place of business (correct)

Inside an office

Only available upon request

On the company's website

What should a manufacturer of tobacco products include on their sign besides their full name?

Their assessment number Signup and view all the answers

What is the responsibility of individuals engaged in peddling regarding the certificate of payment?

Carry it with them for inspection upon demand Signup and view all the answers

What is the primary purpose of a Taxpayer Identification Number (TIN)?

To facilitate proper identification of individuals for tax purposes Signup and view all the answers

Which of the following documents does NOT typically require a TIN?

Personal shopping receipts Signup and view all the answers

What must be done when a registered taxpayer dies?

The estate of the decedent must be registered and assigned a new TIN Signup and view all the answers

Which of the following is a document that requires a TIN for registration?

Building construction permit Signup and view all the answers

Whose responsibility is it to assign a TIN for tax identification?

The Bureau of Internal Revenue Signup and view all the answers

What must be submitted to the Bureau of Internal Revenue within thirty days following the death of an individual who paid the annual registration fee?

Inventories of goods or stocks Signup and view all the answers

What happens to the annual registration fee payment if the business is continued by the estate of the deceased?

No additional payment is required during the term already paid Signup and view all the answers

Which of the following statements about the removal of a business is correct?

No additional tax payment is required during the previously paid term. Signup and view all the answers

Which authority has the power to prescribe rules for the removal of a business without additional tax?

The Secretary of Finance Signup and view all the answers

What is required when there is a transfer of ownership or change of name of a business establishment?

Inventories of goods or stocks must be submitted. Signup and view all the answers

What is the required preservation period for books of accounts and records of corporations and partnerships?

Until the Commissioner assesses them Signup and view all the answers

Under what condition can the Commissioner examine books of accounts more than once per taxable year?

In case of fraud or irregularity Signup and view all the answers

What must businesses do when they retire from business concerning their books of accounts?

Submit their books within 10 days for examination Signup and view all the answers

Where can the examination and inspection of accounting records be performed?

In the taxpayer's office or the Bureau of Internal Revenue office Signup and view all the answers

Which of the following is NOT a reason for the Commissioner to conduct more than one examination in a taxable year?

The corporation's financial performance is declining Signup and view all the answers

What is the time frame for submission of accounting records after business retirement unless otherwise allowed?

Within 10 days Signup and view all the answers

What is one of the powers of the Commissioner concerning obtaining information?

To conduct separate examinations under specific circumstances Signup and view all the answers

When can examinations for income tax purposes take place?

Only once per taxable year generally Signup and view all the answers

What is required for the registration of a nonresident decedent's estate if the executor is not registered?

Register with the Taxpayer Identification Number supplied by the Revenue District Office. Signup and view all the answers

What is the consequence of securing more than one Taxpayer Identification Number?

It leads to criminal liability under Section 275. Signup and view all the answers

For which transaction value is it mandatory to issue a registered receipt or sales invoice?

For merchandise valued at twenty-five pesos or more. Signup and view all the answers

What must be included in a receipt or invoice for sales of one hundred pesos or more?

The purchaser's name, business style, and address. Signup and view all the answers

If a VAT-registered person is the purchaser, what additional information must the invoice or receipt contain?

The Taxpayer Identification Number (TIN) of the purchaser. Signup and view all the answers

What is stated regarding the exemption of receipts for services rendered valued below twenty-five pesos?

They are exempt from needing a receipt or invoice. Signup and view all the answers

How should receipts or sales invoices be prepared for transactions of twenty-five pesos or more?

In at least duplicate. Signup and view all the answers

What is the implication of a person being found in violation of the provisions concerning multiple Taxpayer Identification Numbers?

They face criminal liability. Signup and view all the answers

Study Notes

Preserving Books of Accounts and Other Accounting Records

Corporations, partnerships, and individuals must preserve their books of accounts for a period beginning with the last entry until the last day for assessment specified in Section 203 of the tax code.
These books are subject to examination and inspection by internal revenue officers.
For income tax purposes, the examination and inspection can only be done once per taxable year, unless specific circumstances arise such as fraud, irregularity, mistakes, taxpayer request, or verification of compliance with withholding tax laws or regulations.
Examination and inspection can be conducted at the taxpayer's office, place of business, or at the Bureau of Internal Revenue.
Businesses that cease operations must submit their books of accounts to the Bureau of Internal Revenue within 10 days of retirement, or within a longer period if granted by the Commissioner.

Taxpayer Identification Number (TIN)

Individuals or entities required to file tax returns or other documents must have a TIN.
This number is used for identification purposes and is required for various transactions like sugar quedans, domestic bills of lading, documents registered with the Register of Deeds, transportation equipment registration certificates, SEC documents, building permits, loan applications, mayor's permits, business licenses, and any other documents mandated by the Secretary of Finance.
When a taxpayer dies, their estate must register with a new TIN.
Non-resident decedents' estates are registered with the Revenue District Office where their executor or administrator is registered, or with the Revenue District Office having jurisdiction over their legal residence if the executor or administrator is not registered.
Each taxpayer is assigned only one TIN. Having multiple TINs can result in criminal liabilities under Section 275 of the tax code.

Issuance of Receipts or Sales Invoices

Persons subject to internal revenue tax must issue receipts or sales invoices for sales or services valued at P25 or more.
These documents must show the date, quantity, unit cost, and description of goods or services.
For sales transactions of P100 or more, or for sales by VAT-registered persons to other VAT-registered persons, or for transactions involving rentals, commissions, compensations, or fees, the receipt or invoice must include the name, business style, and address of the buyer, customer, or client.
If the buyer is VAT-registered, the receipt or invoice must indicate their TIN.

Signs Required for Distillers, Rectifiers, Compounders, Repackers, and Wholesale Dealers

Distillers, rectifiers, compounders, repackers, and wholesale liquor dealers must display signs outside their place of business with their name or firm style, the words "Registered Distiller", "Rectifier of Spirits", "Compounder of Liquors", "Repacker of Wines or Distilled Spirits", or "Wholesale Liquor Dealer”, and their assessment number.
The sign must be visible and the letters must be at least 6 centimeters high.

Signs for Tobacco Manufacturers and Wholesalers

Manufacturers of cigars, cigarettes or tobacco, and wholesale leaf tobacco or manufactured tobacco product dealers must display a sign outside their business with their full name, business, and assessment number.
The sign must be visible and the letters must be at least 6 centimeters high.

Exhibiting Certificates of Payment at Place of Business

Persons engaged in businesses subject to an annual registration fee must display their tax payment certificates (receipts) conspicuously in their place of business.
Peddlers and other individuals without a fixed place of business must carry their certificates and produce them on demand.

Continuation of Business After Death and Removal of Business

If a business owner who has paid the annual registration fee dies and the business is continued by their estate, no additional registration fee is required.
The estate must submit inventories of goods or stocks to the Bureau of Internal Revenue within 30 days of the owner's death.
The same requirement applies for transfers of ownership or business name changes.
A business that has paid the annual registration fee can be removed and continued at another location without paying additional tax for the remaining validity period, subject to the rules and regulations prescribed by the Secretary of Finance.

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Description

Test your knowledge on the preservation of books of accounts and the importance of Taxpayer Identification Numbers (TIN). This quiz covers the requirements for maintaining accounting records, inspection protocols, and responsibilities for businesses at the time of retirement. Ensure you understand the implications for individual and corporate taxpayers.