Practice question
A partnership of accountants regularly operates a separate retail merchandise business producing part of its income. It invokes the GPP exclusion solely because all partners are licensed accountants. Which is best?
- Professional credentials alone do not satisfy the sole-common-profession and no-trade-or-business-income conditions for GPP treatment.
- Every partnership of licensed persons automatically is a GPP regardless of activities.
- Retail income automatically becomes professional fees by bookkeeping entry.
- The partners' licenses repeal the corporation definition.
- A partnership can never be included in the Code's corporation definition.
Legal references
- NIRC, Sections 5-7,22-23 and32, as enacted in RA8424 and subject to the cited later amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA12214, May29,2025, CMEPA, including amended NIRC Sections22,25 and32: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
- RA11976, Ease of Paying Taxes Act, Section3 amending NIRC21 taxpayer classifications: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
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