Questions regarding on Module 5 “Introduction to Income Tax”

Group 2

1. Under the Constructive Receipt- For example, I received a paycheck at the end of the year. For
tax purposes, I must report the amount of the paycheck as earned income for that year, even if
they did not actually deposit the check until after the new year. Do I have to pay taxes on
uncashed checks?

2. Why does loss of capital decrease in net worth while loss of profits does not decrease net
worth?

3. Differentiate benefit concept and realized concept.

4. For example, the fair value of the land already computed and then you paid the tax base on the
fair value, then after a week the value of the land increase, is it still taxable?

5. What will happen, if you don’t declare taxable income?

Group 3

1. How would you explain the distinction between natural persons and juridical persons in the
context of entities and why is this differentiation important in legal and tax considerations?

2. What is the capital recovery factor in time value of money?

3. Why there are exemptions in taxes?

4. How does the loss capital affect the net worth?

5. In resident alien, residing in the Philippines, if the tax payer had a business in Canada, where
will he/she pay his/her obligation in tax? In the Philippines or Canada? If in Canada, how about
his obligation in tax in the Philippines vise versa?

Group 4

1. What are some common deductions that can be applied to taxable income?

2. What are the significance of constructive receipt?

3. Why do we have to pay tax even when TDS was deducted from income?

4. Do we need to file an income tax return even if taxable income is below the threshold limit?

5. If you received a check from a customer on the 29th Day of December for the year 2020, and
you didn’t cash it until the 3rd day of January, 2021, will the check be counted as an income for
the tax year 2021?
Group 5

1. Why is insurance for crops/livestocks still taxable? The farmer is expected to feel relief as a
result for misfortunes, why taxing it is necessary?

2. Follow up related to the first question: Can a farmer in any situation postpone or delay
recognizing crop insurance in order to avoid paying certain tax?

3. As stated on their report, exempting income realized in non cash consideration would open a
wide avenue for tax evasion. Are non-cash considerations still legal?

4. Please elaborate constructive receipt.

5. Please give examples of employee trust fund.