Practice question
A firm calls its worker’s monthly payment a consulting fee, but the stipulated facts establish an employer-employee relationship and no exclusion applies. How should the payment be classified?
- A tax-free gift because of its title
- Passive bank interest
- A dividend without share ownership
- Compensation income despite the consulting label
- An exempt inheritance
Legal references
- RR 8-2018, Section 2: https://bir-cdn.bir.gov.ph/local/pdf/RR%20No.%208-2018.pdf
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