No. Pursuant to the case of Commissioner of Internal Revenue v. Baier-Nickel (G.R. No. 153793, August 29, 2006), the factor which determines the…

The question

No. Pursuant to the case of Commissioner of Internal Revenue v. Baier-Nickel (G.R. No. 153793, August 29, 2006), the factor which determines the source of income for personal services is the place where the services were actually rendered. Since Single Star, a non-resident foreign corporation, will perform all the managerial services for Triple Star’s branch in Hong Kong, all compensation income arising from the performance of such services will be considered income from sources outside the Philippines, and therefore not subject to Philippine income tax. The municipality of San Isidro passed an ordinance imposing a tax on installation managers. At that time, there was only one installation manager in the municipality; thus, only he would be liable for the tax. Is the law constitutional? (2013 Bar Question)

1. A.It is unconstitutional because it clearly discriminates against this person.
2. B.It is unconstitutional for lack of legal basis.
3. C.It is constitutional as it applies to all persons in that class.
4. D.It is constitutional because the power to tax is the power to destroy.

This question has not been answered yet.