TEST1-A-TRUE OR B-FALSE- 'lD

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TEST1-A-TRUE OR B-FALSE- 'lD. 'l'l. 12. 13. If debt is cancelled due to services rendered, the basis of tax is the value of service rendered. The excess of actual expenses over advances made shall constitute taxable income if such amount is not returned to the employer. Remuneration for casual labor not in the course of an employer's trade or business is not considered compensation. Income obtained through illegal means is included in the wrongdoer's gross income even though he is obligated to return it when discovered. . Actual repayment of embezzled fund by the wrongdoer will give rise to reduction of his gross income. .As a rule, income obtained illegally is not taxable if the wrongdoer is obligated to return it when discovered. Income received by error is not to be reported as part of the gross income. . A foreigner who stayed in the Philippines for more than 180 days during the taxable year is deemed as doing business within and his income within and outside the Phils. Is taxable in the Philippines. There is employer-employee relationship when the person for whom services are performed has the right to control and direct the individual who performs the services, not only as to the result to be accomplished by the work but also as to the details and means by which the result is accomplished. Compensation- means all remuneration for services performed by an employee for his employer under an employer-employee relationship. Passive income subject to final tax shall form part of the gross income for purposes of computing the normal income tax liability of individuals and corporations. Remuneration for casual labor not in the course of an employer's trade or business is considered compensation. A foreigner who stays in the Philippines for 180 days during the taxable year is deemed as doing business in the Philippines. 14. An alien who comes to the Philippines for a definite purpose which in its nature may be promptly accomplished is considered as a Nonresident alien not engaged in business. T 15. An alien who comes to the Philippines for a definite purpose which in its nature would require an extended stay is a non resident alien. 16. Baptismal fees given to religious officers are not subject to income tax because of the separation of church and state. 17. In the sale of service, gross income means gross receipts less sales returns, 18. 19. allowances, discounts and cost of services. Any amount received by an employee for any cause beyond the control of the employee is tax exempt. All separation pay is taxable.