Taxation, 2018 Bar — Question II

QUESTION

Kronge Konsult, Inc. (KKI) is a Philippine corporation engaged in architectural design, engineering, and construction work. Its principal office is located in Makati City, but it has various infrastructure projects in the country and abroad. Thus, KKI employs both local and foreign workers. The company has adopted a policy that the employees' salaries are paid in the currency of the country where they are assigned or detailed. Below are some of the employees of KKI. Determine whether the compensation they received from KKI in 2017 is taxable under Philippine laws and whether they are required to file tax returns with the Bureau of Internal Revenue (BIR). (2% each) (a) Kris Konejero, a Filipino accountant in KKI's Tax Department in the Makati office, and married to a Filipino engineer also working in KKI; (b) Klaus Kloner, a German national who heads KKI's Design Department in its Makati office; (c) Krisanto Konde, a Filipino engineer in KKI's Design Department who was hired to work at the principal office last January 2017. In April 2017, he was assigned and detailed in the company's project in Jakarta, Indonesia, which project is expected to be completed in April 2019; (d) Kamilo Konde, Krisanto's brother, also an engineer assigned to KKI's project in Taipei, Taiwan. Since KKI provides for housing and other basic needs, Kamila requested that all his salaries, paid in Taiwanese dollars, be paid to his wife in Manila in its Philippine Peso equivalent; and (e) Karen Karenina, a Filipino architect in KKI's Design Department who reported back to KKI's Makati office in June 2017 after KKI's project in Kuala Lumpur, Malaysia was completed.

You can write freely without an account. Sign in to reveal the suggested answer and track your progress.