Juan operates a grocery in Baguio City as sole proprietor. An adjoining lot is used as parking area of his customers. In 2017, due to a business reversal, Juan disallowed the use of the lot as parking space for customers and contemplated on selling it. It was only recently, in June 2021, that Juan was able to sell the lot at a gain. a. The gain is subject to capital gains tax.b. The gain is subject to regular income tax.c. The gain is subject to final withholding tax on passive income. d. The gain is tax exempt. Identify a false statement:a. Capital Gains Tax is a tax imposed on thegains realized by the seller from the sale,exchange, or other disposition of certaincapital assets located in the Philippines,including pacto de retro sales and otherforms of conditional sale.b. Under NIRC, the capital gains tax on thesale of domestic stocks sold directly tobuyer is a final tax.c. Under NIRC, The capital gains tax on thesale of real property located in thePhilippines and classified as capital asset isa final tax.O d. None of the aboveO e. All of the above

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Juan operates a grocery in Baguio City as sole proprietor. An adjoining lot is used as parking area of his customers. In 2017, due to a business reversal, Juan disallowed the use of the lot as parking space for customers and contemplated on selling it. It was only recently, in June 2021, that Juan was able to sell the lot at a gain. a. The gain is subject to capital gains tax. b. The gain is subject to regular income tax. c. The gain is subject to final withholding tax on passive income. d. The gain is tax exempt.

Juan operates a grocery in Baguio City as sole proprietor. An adjoining lot is used as parking area of his customers. In 2017, due to a business reversal, Juan disallowed the use of the lot as parking space for customers and contemplated on selling it. It was only recently, in June 2021, that Juan was able to sell the lot at a gain. a. The gain is subject to capital gains tax. b. The gain is subject to regular income tax. c. The gain is subject to final withholding tax on passive income. d. The gain is tax exempt.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 21P

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