In 2022, Marian Santiago, a CPA, decides to return to her hometown to start her own practice. For taxable year 2022, Santiago expects that after deducting cost of services of P900,000, her gross income from practice will be P2,300,000. She also expects to incur operating expenses in the total amount of P600,000 constituting mostly of her office space rent, utilities, and miscellaneous expenses. What is the best strategy to reduce the income tax liability of Santiago? Commit tax evasion. Form a one person corporation. Avail of the 8% income tax rate. Use graduated rates.

In 2022, Marian Santiago, a CPA, decides to return to her hometown to start her own practice. For taxable year 2022, Santiago expects that after deducting cost of services of P900,000, her gross income from practice will be P2,300,000. She also expects to incur operating expenses in the total amount of P600,000 constituting mostly of her office space rent, utilities, and miscellaneous expenses. What is the best strategy to reduce the income tax liability of Santiago? Commit tax evasion. Form a one person corporation. Avail of the 8% income tax rate. Use graduated rates.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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