Taxation, 2015 Bar — Question II

QUESTION

Mr. A, a citizen and resident of the Philippines, is a professional boxer. In a professional boxing match held in 2013, he won prize money in United States (US) dollars equivalent to P300,000,000. (A) Is the prize money paid to and received by Mr. A in the US taxable in the Philippines? Why? (2%) (B) May Mr. A's prize money qualify as an exclusion from his gross income? Why? (2%) (C) The US already imposed and withheld income taxes from Mr. A's prize money. How may Mr. A use or apply the income taxes he paid on his prize money to the US when he computes his income tax liability in the Philippines for 2013? (4%)

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