During the audit conducted by the BIR official, it was found that the rental income claimed by the corporation was not subjected to expanded withholding tax. Accordingly, the claimed rental expense: * Is deductible from the gross income of the corporation, despite non-withholding of income taxby the corporation Is deductible, if it can be shown that the lessor has correctly reported the rental income in his tax return. Is not deductible from gross income of the corporation due to non-withholding of tax; Is deductible from the gross income of the corporation, provided that the 5% expanded withholding tax is paid by the corporation during the audit

During the audit conducted by the BIR official, it was found that the rental income claimed by the corporation was not subjected to expanded withholding tax. Accordingly, the claimed rental expense: * Is deductible from the gross income of the corporation, despite non-withholding of income taxby the corporation Is deductible, if it can be shown that the lessor has correctly reported the rental income in his tax return. Is not deductible from gross income of the corporation due to non-withholding of tax; Is deductible from the gross income of the corporation, provided that the 5% expanded withholding tax is paid by the corporation during the audit

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 29P

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