Practice question
A covered corporation receives intercorporate dividends and excludes them from its additional community-tax base solely by invoking their treatment under a different national income-tax provision. No community-tax exemption applies. Which is best?
- Every national income-tax classification necessarily controls all local tax bases.
- Apply 158's express inclusion for this local tax rather than importing an automatic exclusion from another tax.
- Intercorporate dividends are expressly absent from 158.
- The corporation may choose any base without statutory support.
- The dividends transfer the tax to every employee.
Legal references
- RA7160, LGC Sections139,145-146,150,157-163 and252-253: https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
Answer this question in flashcards to review your response and continue practicing.