1)     Rule of "No estoppel against the government" means: a

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1)     Rule of "No estoppel against the government" means:

a. Rule of law that in the performance of its governmental functions, the state cannot be estopped by the neglect of its agents and officers.

b. The government is not estopped by the mistakes or errors of its agents; erroneous application and enforcement of law by public officers do not block the subsequent correct application of statutes

c. Both a and b

d. Neither a or b

2.     In case of ambiguity, tax laws imposing a tax shall be interpreted

a. Strictly against the taxpayer

b. Liberally in favor of the taxpayer

c. Liberally in favor of the government

d. None of the choices

3.     Which among the following taxpayers is required to use only the calendar year for tax purposes?

a.      Partnership exclusively for the design of government infrastructure projects considered as practice of civil engineering.

b.     Joint-stock company formed for the purpose of undertaking construction projects.

c.      Business partnership engaged in energy operations under a service contract with the government.

d.     Joint account (cuentas en participation) engaged in the trading of mineral ores.

4.     In March 2021, Tonette, who is fond of jewelries, bought a diamond ring for P750,000.00, a bracelet for P250,000.00, a necklace for P500,000.00, and a brooch for P500,000.00. Tonette derives income from the exercise of her profession as a licensed CPA. In October 2021, Tonette sold her diamond ring, bracelet, and necklace for only P1.25 million incurring a loss of P250,000.00, she used the P1.25 million to buy a solo diamond ring in November 2021 which she sold for P1.5 million in September 2022. Tonette had no other transaction in jewelry in 2022. Which among the following describes the tax implications arising from the above transactions?

a.   Tonette may deduct his 2021 loss from her 2021 professional income.

b.  Tonette may carry over and deduct her 2021 loss only from her 2022 gain.

c.   Tonette may carry over and deduct her 2021 loss from her 2022 professional income as well as from her gain.

d.  Tonette may not deduct her 2021 loss from both her 2021 loss from both her 2022 professional income and her gain.

5.      Anion, Inc. received a notice of assessment and a letter from the BIR demanding the payment of P3 million pesos in deficiency income tax for the taxable year 2021. The financial statements of the company show that it has been suffering financial reverses from the year 2022 up to the present. Its asset position shows that it could pay only P500,000.00 which it offered as a compromise to the BIR. Which among the following may the BIR require to enable into a compromise with Anion, Inc.?

a.      Anion must show it has faithfully paid taxes before 2021.

b.     Anion must promise to pay its deficiency when financially able.

c.      Anion must waive its right to the secrecy of its bank deposits.

d.     Anion must immediately deposit the P500,000.00 with the BIR.