Professional Documents
Culture Documents
I.
II.
Page 2
GROSS INCOME
A. Inclusions
Sec. 32(A)
1. Compensation: Special Problems on In-Kind Compensation
Sec. 2.78.1(A) and (1), Rev. Regs. 2-98 (April 17, 1998)
a. Limited Choice and Restricted Property
U.S. v. Drescher, 179 F.2d 863 (2nd Cir. 1950)
BIR Rul. 9-04 (Sept. 13, 2004)
b. Forced Consumption: Convenience of the Employer Rule
Sec. 2.78.1(A)(2), Rev. Regs. 2-98 (April 17, 1998)
Sec. 2, Rev. Audit Mem. Order 1-87 (April 23, 1987)
Benaglia v. CIR, 36 B.T.A. 838 (1937)
c. De Minimis Benefits
Sec. 2.78.1(A)(3), Rev. Regs. 2-98 (April 17, 1998)
BIR Rul. 23-02 (June 21, 2002)
d. Travel and Entertainment
Rudolph v. U.S., 370 U.S. 269 (1962)
2. Business Income
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3.
4.
5.
6.
7.
Gains
Interests
Rents
Royalties
Dividends
Sec. 73
Sec. 250-256, Rev. Regs. 2
Wise & Co., Inc. v. Meer (June 30, 1947)
CIR v. CA (Jan. 20, 1999)
CIR v. Manning (Aug. 6, 1975)
BIR Rul. 39-02 (Nov. 11, 2002)
8. Annuities
9. Prizes and winnings
10. Pensions
11. Share in GPPs Income
Sec. 26
B. Exclusions
Sec. 32(B)
1. Gifts, Bequests and Devises
Sec. 32(B)(3)
CIR v. Duberstein, 363 U.S. 278 (1960)
Hornung v. CIR, supra
2. Compensation for Injuries or Sickness
Sec. 32(B)(4)
OGilvie v. U.S., 519 U.S. 79 (1996)
Murphy v. U.S., No. 05-5139 (D.C. Cir. Aug. 22, 2006)
Murphy v. U.S., No. 05-5139 (D.C. Cir. July 3, 2007) (on rehearing)
BIR Rul. 57-83 (April 12, 1983)
3. Retirement Benefits, Pensions, Gratuities, etc.
Sec. 32(B)(6) and (7)(e)
CIR v. CA (March 23, 1992)
CIR v. CA (Oct. 17, 1991)
In Re: Atty. Bernardo Zialcita, A.M. No. 90-6-015-SC (Oct. 18, 1990)
BIR Rul. 1-95 (Jan. 6, 1995)
Rep. Act No. 4917 (June 17, 1967)
Rep. Act No. 7833 (Dec. 8, 1994)
Rev. Regs. 2-95 (Jan. 3, 1995)
RMC 36-94 (Dec. 14, 1994)
4. Income Derived by Foreign Government
Sec. 32(B)(7)(a)
CIR v. Mitsubishi Metal Corp. (Jan. 22, 1990)
5. Gains from the Sale of Bonds, Debentures or Other Certificates of
Indebtedness
Sec. 32(B)(7)(g)
Nippon Life Ins. Co., Inc. v. CIR, CTA Case No. 6142 (Feb. 4, 2002)
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IV.
DEDUCTIONS
Sec. 34
Sec. 36(A)
Secs. 119 to 120, Rev. Regs. 2
A. Expenses
Sec. 34(A)
1. Non-Deductible Personal Expenses v. Deductible Business Expenses
Smith v. CIR, 40 B.T.A. 1038 (1939)
Pevsner v. CIR, 628 F.2d 467 (5th Cir. 1980)
Rudolph v. U.S., supra
Schultz v. CIR, 16 T.C. 401 (1951)
2. Travel Expenses While Away from Home
CIR v. Flowers, 326 U.S. 465 (1946)
Hantzis v. CIR, 638 F.2d 248 (1st Cir. 1981)
3. Deductible Current Expenses v. Non-Deductible Capital Expenditures
Mt. Morris Drive-In Theatre Co. v. CIR, 25 T.C. 272 (1955)
Midland Empire Packing Co. v. CIR, 14 T.C. 635 (1950)
INDOPCO, Inc. v. CIR, 503 U.S. 79 (1992)
CIR v. General Foods (Phil.), Inc. (April 24, 2003)
4. Ordinary and Necessary
Welch v. Helvering, 290 U.S. 111 (1933)
Atlas Consolidated Mining & Devt Corp. v. CIR (Jan. 27, 1981)
5. Reasonable Compensation
C.M. Hoskins & Co., Inc. v. CIR (Nov. 28, 1969)
Kuenzle & Streiff, Inc. v. Collector (Oct. 20, 1959)
6. Period for Which Deductions and Credits Taken
Sec. 45
CIR v. Isabela Cultural Corp. (Feb. 12, 2007)
B. Interest
Sec. 34(B)
Paper Ind. Corp. of the Phil. v. CA (Dec. 1, 1995)
CIR v. Vda. de Prieto (Sept. 30, 1960)
Rev. Regs. 13-2000 (Nov. 20, 2000)
1. Interest arbitrage
BIR Rul. No. 006-00 (Jan. 5, 2000)
C. Taxes
Section 34(C)
CIR v. Lednicky (July 31, 1964)
D. Losses
1. Casualty losses
Sec. 34(D)(1), (2)
2. NOLCO
Sec. 34(D)(3)
Paper Ind. Corp. of the Phil. v. CA, supra
E.
F.
G.
H.
I.
J.
K.
L.
M.
V.
TAXABLE INCOME
Sec. 31
VI.
VII.
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
XI.
XII.
TAX-EXEMPT CORPORATIONS
Sec. 30
CIR v. G. Sinco Educational Corp. (Oct. 23, 1956)
Executive Order 226, Article 39
Republic Act 7916, Secs. 23 25
CIR v. CA, CTA and Young Mens Christian Assoc. of the Phil., Inc. (Oct. 14,
1998)
XIII.
XIV.
XV.
Sec. 40(A)
Crane v. CIR, 331 U.S. 1 (1947)
B. Amount Realized
Sec. 40(A)
C. Cost or Basis for Determining Gain or Loss
Sec. 40(B)
Philadelphia Park Amusement Co. v. U.S., 126 F. Supp. 184 (1954)
D. Exchange of Property
1. General Rule Gain Recognition
Sec. 40(C)(1)
2. Exception Non-Recognition Transactions (Tax-Free Exchange)
a. Transfer of Property to a Controlled Corporation
Sec. 40(C)(6)(c)
Sec. 40(C)(2), last par., NIRC
Delpher Trades Corp. v. IAC (Jan. 26, 1988)
BIR Rul. No. 274-87 (Sept. 9, 1987)
RMR 01-01 (Nov. 29, 2001)
Intermountain Lumber v. CIR, 65 T.C. 1025 (1976)
b. Statutory Merger or Consolidation
Sec. 40(C)(6)(a), (b)
Sec. 40(C)(2)(a), (b), (c)
CIR v. Rufino (Feb. 27, 1987)
c. Transfer of Substantially All the Assets (De Facto Merger)
Sec. 40(C)(6)(a), (b)
Sec. 40(C)(2)(a), (b), (c)
BIR Rul. 19-97 (Feb. 27, 1997)
RMR 1-02 (April 25, 2002)
d. Exchange Not Solely in Kind (Boot)
Sec. 40(C)(3)
e. Assumption of Liability in Tax-Free Exchanges
Sec. 40(C)(4)
f. Carry-Over/Substituted Basis in Tax-Free Exchanges
Sec. 40(C)(5)
Rev. Regs. 18-01 (Nov. 13, 2001), Sec. 2 only
g. Business Purpose
Gregory v. Helvering, 293 U.S. 465 (1935)
3. Losses from Wash Sales of Stocks or Securities
Sec. 38
Sec. 131, Rev. Regs. 2
XVI.
SITUS OF TAXATION
Sec. 42
A. Gross Income from Sources Within and Without the Phils.
Sec. 42(A) and (C)
1. Interest
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Page 12
Page 13
WITHHOLDING TAX
A. Final Withholding Tax at Source
Sec. 57(A)
CIR vs. Wander Philippines, Inc. (April 15, 1988)
CIR v. Procter & Gamble Phil. Mfg. Corp. (April 15, 1988)
Sec. 2.57(A) & 2.57.1, Rev. Regs. 2-98 (April 17, 1998)
B. Creditable Withholding Tax
Sec. 57(B)
Filipinas Synthetic Fiber Corporation v. CA (Oct. 12, 1999)
Sec. 2.57(B) & 2.57.2, Rev. Regs. 2-98 (April 17, 1998)
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WEEK 1 I
WEEK 2 II to III
WEEK 3 IV
WEEK 4 IV
WEEK 5 V to VII
WEEK 6 VIII to IX
WEEK 7 Midterms
WEEK 8 X to XIII
WEEK 9 XIV
WEEK 10 XV
WEEK 11 XVI to XVII
WEEK 12 XVIII
WEEK 13 XIX
WEEK 14 Finals
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