Practice question
Which condition forms part of the taxable-income requisites discussed in Shinko?
- Every bank-account credit is necessarily taxable gain.
- Every expense automatically creates income equal to the expense.
- A gain must be realized or received and not excluded by law or treaty.
- A taxpayer must first choose to call the receipt profit.
- Only physical cash can ever be income.
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
- CIR v. Shinko Electric Industries, G.R.226287, July6,2021, main decision, income concept and requisites: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/67666
Answer this question in flashcards to review your response and continue practicing.