Professional Documents
Culture Documents
Realized,
Determine who the taxpayer is. Whether taxable worldwide or just within the Philippines.
Dividends: what is the difference in the implication between the issuance of a stock vs cash dividend.
ING bank vs CIR – bonuses or deductibility of bonuses. In order to be deductible, employer is responsible
for the withholding. Assuming it reaches the 82,000 (NIRC) 90,000 php (TRAIN).
Ruling: the obligation to withhold shall arise upon accrual of that deduction or upon receipt of the
income whichever is earlier.
Taxable period
Gross income derived from whatever source. List under Sec 32 not exclusive.
Self employed and professional income, dealings and property (CGT), ordinary asset, interest subject to
final tax.
Can damages be considered as income? Sec 32(d)(4). No. Compensation for injury are excluded from
gross income. Hence, not taxable.
Illegal income – James vs. U.S ; Illegal income is income subject to tax.
Deductions:
Recovery of an account previously written off forms part of the gross income. Yung binayaran ka na.
Sources of income:
13th month pay? No. Bonuses are excluded from gross income.
Tricky: Mixed convenience of the employer and employee. Tax problem: series of fringe benefits,
determine whether or not subject to fringe benefit tax. In the end, its up to the company’s controls.
Note: use of aircraft including helicopters – not subject to fringe benefit tax
1. Benefit by virtue by a CBA and productivity incentive schemes. (Memorize all the de-minis
benefits).
Real property also includes machineries. As long as used for trade or business.
How would you know if a person is engaged in the business of selling real property?
Engages in 6 transactions- deemed as habitually engaged in real estate business. Magic number is 6 to
consider the real properties as ordinary assets.
Exempt: sale of principal residence. Can only be availed once every ten years. Must be fully realized.
Non-Redemption of property during involuntary sales
Period of redemption – bank bumili, i-reredeem. CGT? Not subject to capital gains tax because there is
still a period of redemption.
Tax free exchange for stock. A maximum of 5 persons, minimum number of incorporators.
Intellectual property - taxing authority is that which has jurisdiction won where the intellectual property
was used.
Kilcorp viz economic nexus test: economic nexus: it appears that there are many transactions.
1. Elements of MR MNT
2. Interplay of periods Judicial affidavit, etc, yun yung mahabang case…
3. Prohibition against filing of more than one MR
4. Situations where you are required to file ordinary appeal vs. certiorari
5. Nuances between notice of appeal or record on appeal. If multiple appeals allowed: pwede
record on appeal.
6. Substantive: remember basic oblicon, coa, contract, tort. (feel ko eto yung sa case kanina
about solidary liability.)