On calgary inc received a preliminary assessment

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39.On March 10, 2010, Calgary Inc. received a preliminary assessment notice (PAN) dated March 1,2011 issued by the Commissioner of Internal Revenue (CIR) for deficiency income tax for itstaxable year 2009. It failed to protest the PAN. The CIR thereupon issued a final assessmentnotice (FAN) with letter of demand on April 30, 2011. The FAN was received by the corporationon May 10, 2011, following which or on May 25, 2011, it filed its protest against it.The CIR denied the protest on the ground that the assessment had already become final andexecutory, the corporation having failed to protest the PAN.Is the CIR correct? Explain.40.Based on the Affidavit of the Commissioner of Internal Revenue (CIR), an Information for failure tofile income tax return under Section 255 of the National Internal Revenue Code (NIRC) was filed
by the Department of Justice (DOJ) with the Manila Regional Trial Court (RTC) against XX, aManila resident.XX moved to quash the Information on the ground that the RTC has no jurisdiction in view of theabsence of a formal deficiency tax assessment issued by the CIR.Is a prior assessment necessary before an Information for violation of Section 255 of the NIRCcould be filed in court? Explain.41.Are the following transactions subject to VAT? If yes, what is the applicable rate for eachtransaction. State the relevant authorities for your answer.a.Construction by XYZ Construction Co. of concrete barriers for the Asian DevelopmentBank in Ortigas Center to prevent car bombs from ramming the ADB gates along ADBAvenue in Mandaluyong city.b.Call Center operated by a domestic enterprise in Makati that handles exclusively thereservations of a hotel chain which are all located in North America. The services arepaid for in US$ and duly accounted for with the Banko Sentral ng Pilipinas. c.Sale of orchids by a flower shop which raises its flowers in Tagaytay.42.A inherited a two-storey building in Makati from his father, a real estate broker in the ‘60s. A groupof Tibetan monks approach A and offered to lease the building in order to use it as a venue fortheir Buddhist rituals and ceremonies. A accepted the rental of P 1 million for the whole year.The following year, the City Assessor issued an assessment against A for non-payment of realproperty taxes.Is the assessor justified in assessing A’s deficiency real property taxes?43.Don Leon, single but head of the family, Filipino, and resident of Pasig City, died intestate onNovember 15, 2009. He left the following properties and interests:House and lot (family home) in PasigP 800,000Vacation house and lot in Florida USA1,500,000Agricultural land in Naic, Cavite which he inherited from his father 2,000,000Car which is being used by his brother in Cavite500,000Proceeds of life insurance where he named his estate as irrevocablebeneficiary1,000,000Household furnitures and appliances1,000,000Claims against a cousin who has assets of P 10,000 and liabilities ofP 100,000100,000Shares of stock in ABC Corp. a domestic enterprise100,000The expenses and charges on the estate are as follows:Funeral ExpensesP 250,000

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