Taxation, 2013 Bar — Question MC-I

MULTIPLE CHOICE

ABC Corp. was dissolved and liquidating dividends were declared and paid to the stockholders. What tax consequence follows? (1%) (A) ABC Corp. should deduct a final tax of 10% from the dividends. (B) The stockholders should declare their gain from their investment and pay income tax at the ordinary rates (BIR Ruling 39-02, 11 November 2002). (C) The dividends are exempt from tax. (D) ABC Corp. should withhold a 10% creditable tax.

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