Income Taxation Ampongan Pdf Free
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Hilario is not required to report income on the condonation considering that the condonation of debt was given without requiring him to render services. The P50,000 constitutes more as a taxable gift rather than as a taxable income.
Under the tax benefit rule, whenever a bad debt is claimed as deduction from gross income and it resulted to a reduction in its tax liability, the recovery of such is subject to tax. Thus, when Pamco wrote off the accounts and claimed it as deduction from gross income, there was a corresponding reduction in the tax liability. It being the case, the recovery of such debt is taxable to PAMCO but only up to P90,000, the amount that has been beneficial to PAMCO.
Under Outright Method, the lessor is required to report as income the fairmarket value of the improvement at the time of completion. Thus, she hasto report an income of P100,000 on the leasehold improvement and P48,(P4,000 x 12) on the rent, or a total amount of P148,000.
The income from rent received by Vic is taxable to him, while the amountgiven as loan is not because there was no gain realized by Vic in thistransaction. As a matter of fact, there was no gain realized whether aspayment for services, interest or profit from investment.
A schedular system of taxation is a system employed where the income tax treatment varies and is made to depend on the kind or category of taxable income of the taxpayer. It is distinguished from global system in the sense that the latter is employed where the tax system views indifferently the tax base and generally treats in common all categories of taxable income of individual (Tan vs. Del Rosario, 237 SCRA 324, 331).
Dividends received by a domestic and resident foreign from a domesticcorporation are not subject to income tax.Dividends received by a resident citizen from a domestic corporation aresubject to a final tax of 10%.Dividends received by a domestic corporation from a foreign corporationare subject to ordinary income tax.
Value-added tax, other percentage taxes and excise tax on certain goodsare taxes found under Titles IV, V and VI, respectively of NIRC, which containthe provisions on business taxation; whereas, income taxation is discussed inTitle II of the same code.
The amount of P3,000 raised by Mon is a gift which should be excludedfrom gross income because when a financial aid is asked, that means that thereis no legally demandable obligation on the part of other people to give himmoney.
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