Conwi vs CTA

*Definition of Income Taxation

Conwi vs CTA, GR No. 48535, 1992

Income Tax is an amount of money coming to a person or corporation within or specified time, whether as payment for services, interest or profit from investment. Unless otherwise specified, it means cash or its equivalent. Income can also be thought of as a flow of the fruits of one’s labor. Earning and spending in the same foreign currency does not involve conversion hence it does not constitute foreign exchange transaction.

Foreign exchange is defined as the conversion of an amount of money or currency of one country into an equivalent amount of money or currency of another.