Legalese 2009 (Week 38)

Lexicon

taxable income – pertinent items of gross income specified in the Tax Code, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income by the Tax Code or other special laws. (Tax Code, sec. 31)

Lexplore

An income tax is hereby imposed:

(a) On the taxable income defined in Section 31 of this Code, other than income subject to tax under Subsections (B), (C) and (D) of this Section, derived for each taxable year from all sources within and without the Philippines by every individual citizen of the Philippines residing therein; (Tax Code, sec. 24)

Lexplore

Under the Income Tax Regulations, income means all wealth which flows into the taxpayer other than as mere return on capital.

Lexcogitate

A’s car hits B, who suffers a fractured leg. B was not able to go to work for two weeks. As compensation, A pays B PhP50,000 for medical expenses and PhP20,000 for lost income that B would have earned during the two week period. Should B include A’s payment in his gross income?

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