Practice question
Under amended Section 40(C)(2), are shares issued for services treated as issued in return for property for that nonrecognition route?
- Always
- Only if called founder shares
- No; the statute expressly excludes services shares from that treatment
- Only if services are expensive
- Only if the corporation is newly formed
Legal references
- RA 11534, Section 10, amended NIRC Section 40(C)(2) and (6): https://lawphil.net/statutes/repacts/ra2021/ra_11534_2021.html
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