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Stock Dividends Taxation Ruling

This document discusses several tax law cases and concepts: 1) CIR v CityTrust discusses that stock dividends represent distributions from retained earnings and are not taxable, but cash dividends paid back by a corporation are taxable. 2) Income is broadly defined as coming from any source and includes all income not expressly exempted. It describes income as a flow of wealth. 3) GIT v NIT discusses different types of tax systems. 4) The claim of right doctrine states that a taxable gain requires a claim of right to the gain and no obligation to return it.

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Morris Julian
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31 views1 page

Stock Dividends Taxation Ruling

This document discusses several tax law cases and concepts: 1) CIR v CityTrust discusses that stock dividends represent distributions from retained earnings and are not taxable, but cash dividends paid back by a corporation are taxable. 2) Income is broadly defined as coming from any source and includes all income not expressly exempted. It describes income as a flow of wealth. 3) GIT v NIT discusses different types of tax systems. 4) The claim of right doctrine states that a taxable gain requires a claim of right to the gain and no obligation to return it.

Uploaded by

Morris Julian
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CIR v CItyTrust – stock dividends are not taxable as they represent a distribution from retained

earnings only. But if the corporation cancels/pays it back, it take s the for of a cash dividend,
hence taxable
INCOME – broad and comprehensive. The “income from any source whatever” disclose a
legislative policy to include all income not expressly exempted within the class of taxable
income under our laws.
Income is a flow, flow of wealth.
National
DIrect
Excise
Progressive

GIT v NIT

Claim of right doctrine – a taxable gain is conditioned upon the presence of a claim of right to
the alleged gain and the absence of a definite unconditional obligation to return or repay that
which would otherwise constitute gain. To collect a tax would give the govt an unjustified
preference as to the part of the money that rightfully and completely belongs to the victim.

1. Global
2. Schedular
a. Sison v Ancheta – uniformity within the class, classification is constitutional
3. Semi-global, semi-schedular
a. Ordinary income (CI, PT/BI, NOT subject to Final Tax) will be lumped and will be
put into annual ITR - global
b. Passive income subject to final tax – capital gains from shares of stock and sale of
real property

INCO

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