Practice question
Explain why a genuine repayable loan is not treated as income solely because its proceeds enter the borrower’s bank account, and distinguish debt cancellation from the stated facts.
Legal references
- NIRC, Sections 26, 32(B) and 40(A), (C)(3)-(5), read with later amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- CIR v. Shinko Electric Industries Co., Ltd., G.R. No. 226287, July 6, 2021, main decision, income and gain requirement: https://lawphil.net/judjuris/juri2021/jul2021/gr_226287_2021.html
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