I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
After taking up the portion on exempt exchanges in this article, we now come here, where we will talk about exchanges and sales whose losses won't be recognized by the BIR and deductions will be prohibited. Whether or not you profit from these sales or exchanges, your losses will be disregarded by the BIR:
1.) Exchanges/sales between related parties (see below)
2.) Wash sales (unless made between dealers in securities)
3.) Exchanges in mergers and consolidations that are partly in kind and partly in cash (the cash portion is taxed)
4.) Illegal transactions
5.) Sales/exchanges generally not at an arm's length.
Related Parties
These just don't mean relatives. They also refer to members of a trust (grantor/trustor, fiduciary/trustee & beneficiary) as well as between corporations -if a single individual owns more than 50% of the outstanding stock of each corporation, if either is a personal holding company, whether local or foreign. Related parties can also refer to an individual and a corporation if he owns more than 50% of its outstanding stock.
"Not at arm's length" refers to a transaction where the consideration paid isn't commensurate with the thing's value because oc a certain relationship, such as between a parent company and its subsidiary.
"Not at arm's length" refers to a transaction where the consideration paid isn't commensurate with the thing's value because oc a certain relationship, such as between a parent company and its subsidiary.
1 comments:
Hello, Everyone, I' m Adrik Vadim living in Kurgan City , I want to share with you all on here on how Mr Pedro help me with a loan of 15,000.000.00 Rubles to start up my food beverage delivery after all I have work in several hotels here in kurgan just to earn a living but unfortunate I was still having difficulties to pay a rent but I thank God now that I'm a self employ now with 5 workers working in my care. Just if you are looking for financial freedom I will advise you to contact Mr Pedro with this email below pedroloanss@gmail.com
Post a Comment