Practice question
Which distinction best describes realization and recognition of gain?
- Both always mean printing an invoice
- Realization concerns the gain-producing event; recognition concerns whether tax law currently takes the gain into account
- Recognition means every event is tax-free
- Realization means only a change in the owner’s name
- Both depend only on a cashier’s preference
Legal references
- https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html — NIRC, section 40(A)–(C)
- https://lawphil.net/statutes/repacts/ra2021/ra_11534_2021.html — RA 11534, section 10 amending NIRC section 40(C)(2)
- https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html — RA 12214, section 8 amending NIRC section 32(A)(1)
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