Taxation, 2019 Bar — Question B.11

QUESTION

Mr. D, a Filipino amateur boxer, joined an Olympic qualifying tournament held in Las Vegas, USA, where he won the gold medal. Pleased with Mr. D's accomplishment, the Philippine Government, through the Philippine Olympic Committee, awarded him a cash prize amounting to P1,000,000.00. Upon receipt of the funds, he went to a casino in Pasay City and won the P30,000,000.00 jackpot in the slot machine. The next day, he went to a nearby Lotto outlet and bought a Lotto ticket which won him a cash prize of P5,000.00. Which of the above sums of money is/are subject to income tax? Explain. (5%)

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