Log In Create Account

Philippine Bar review · Question

Practice question: Taxability

Multiple Choice Hard

Practice question

An investor redeems mutual-fund shares after RA 12214 and claims all redemption gains are unconditionally excluded. The statutory condition about prior withholding of final taxes on realized gains at the underlying-asset level is not established. Which is best?
  1. Redemption alone always proves every condition
  2. The current exclusion is conditional, so its statutory prerequisites must be shown
  3. All mutual-fund payments are ordinary salary
  4. No mutual-fund exclusion exists after the amendment
  5. The investor can waive the condition privately

Legal references

  • https://lawphil.net/judjuris/juri2021/jul2021/gr_226287_2021.html — CIR v. Shinko Electric Industries, G.R. No. 226287, July 6, 2021, main opinion
  • https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html — NIRC, section 32(B)(1) and (3)
  • https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html — RA 12214, section 8 amending NIRC section 32

Answer this question in flashcards to review your response and continue practicing.