Practice question
Does realization of a gain alone always settle its taxability?
- Yes, every realized receipt is taxed without exceptions
- Yes, treaties can never matter
- No, statutory or treaty exclusions and applicable tax rules must also be considered
- Yes, only the collector’s preference matters
- Yes, the taxpayer’s legal classification is irrelevant
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.