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and
and
Exception: Mines other than oil and gas wells, where a net
operating loss without the benefit of incentives provided for
under EO No. 226 (Omnibus Investments Code) incurred in any
of the first ten (10) years of operation may be carried over as a
deduction from taxable income for the next five (5) years
immediately following the year of such loss.
(1) The taxpayer was not exempt from income tax the year the
loss was incurred;
5. Taxable period
(3) Short Period - Accounting period which starts after the first
month of the tax year or ends before the last month of the tax
year (less than 12 months). Instances whereby short
accounting period arises:
provisions of Title II, the period for which such return is made [
(1) Individuals;
(2) Corporations ;
Examples are net income from business and gain from the sale
of assets used in trade or business. These earnings are subject
to normal tax.
Deductions, on the other hand, are the amounts which the law
allows to be subtracted from gross income in order to arrive at
net income.
Deductions, on the other hand, are the amounts which the law
allows to be subtracted from gross income in order to arrive at
net income.
requirement
COHAN Rule: This relief will apply if the taxpayer has shown
that it is usual and necessary in the trade to entertain and to
incur similar kinds of expenditures, there being evidence to
show the amounts spent and the persons entertained, though
not itemized. In such a situation, deduction of a portion of the
expenses incurred might be allowed even if there are no
receipts or vouchers. Absence of invoices, receipts or vouchers,
particularly lack of proof of the items constituting the expense
is fatal to the allowance of the deduction [
COHAN Rule: This relief will apply if the taxpayer has shown
that it is usual and necessary in the trade to entertain and to
incur similar kinds of expenditures, there being evidence to
show the amounts spent and the persons entertained, though
not itemized. In such a situation, deduction of a portion of the
expenses incurred might be allowed even if there are no
receipts or vouchers. Absence of invoices, receipts or vouchers,
particularly lack of proof of the items constituting the expense
is fatal to the allowance of the deduction [
. (b) The recipient was selected without any action on his part
to enter a contest or proceedings; and