Question

Write TRUE if the statement is TRUE. If the statement is FALSE, write FALSE and explain why

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.

Answer 1

1.True

When the Commissioner of Internal Revenue' conducts an examination of a tax return and determines that a taxpayer has not reported in-
come, he issues a deficiency notice on that unreported income.Traditionally, when the deficiency notice was presented to the court by the Commissioner, a presumption of correctness attached to it.

Indirect methods involve the determination of tax liabilities through an analysis of a taxpayer’s
financial affairs utilizing information from a range of sources beyond the taxpayer’s declaration and formal books and records

2.True

As a common law system, jurisdiction is conceptually divided between jurisdiction over the of subject matter of a case and jurisdiction over the person A court may use jurisdiction over property located within the perimeter of its powers without regard to personal jurisdiction over the litigant

3.False

The police power and power of taxation may be exercise only by the government.