A.

Exclusions from Gross Income

1. Specific Items Excluded:
a. Sec. 32(B) of the NIRC as amended by RA 10963
2. Are Damages Taxable?
a. O'Gilvie v. United States, 519 U.S. 79 (1996)
b. Take note of exempt damages mentioned in Confederation for Unity,
Recognition and Advancement of Government Employees vs.
Commissioner -
BIR, GR No. 213446 dated July 3, 2018
c. Compare with backwages – RMC No. 39-2012 dated August 3, 2012
3. Retirement Pay
a. Sec. 32(B)(6)(a) of the NIRC
b. Art. 287 of the Labor Code, as amended
c. International Broadcasting Corporation, Inc. vs. Amarilla, GR No. 162775
dated October 27, 2006
d. BIR Ruling No. DA-151-04 dated March 31, 2004
e. BIR Ruling No. 052-00 dated October 30, 2000
4. Terminal Leave Pay
a. CIR vs. CA, GR No. 96016 dated October 17, 1991
b. In Re: Zialcita, AM No. 90-6-015-SC dated October 18, 1990
c. BIR Ruling No. 496-14 dated December 12, 2014
5. Income of the government
a. CIR vs. Mitsubishi Metal Corporation, GR No. 54908 dated January 22,
1990
6. Gains from Bonds
a. BDO vs. Republic of the Philippines, GR No. 198756 dated January 13,
2015 and dated August 16, 2016 (motion for reconsideration).
7. Rule on Excess De Minimis Benefits
a. Q5/A5 of RMC No. 50-2018 dated May 11, 2018
B. Fringe Benefits Tax
1. Sec. 33 of the NIRC (as amended by RA 10963)
2. RR No. 3-98 dated May 21, 1998 as amended by RR No. 11-2018 dated
January 31, 2018 (exclude tax accounting rules)
3. CIR vs. Secretary of Justice and PAGCOR, GR No. 177387 dated November
9, 2016
4. Rules on Health Insurance and Housing
5. De Minimis Benefits
a. Q4/A4 of RMC No. 50-2018 dated May 11, 2018
b. Q5/A5 of RMC No. 50-2018 dated May 11, 2018

C. Deductions from Gross Income

1. Expenses
a. Sec. 34(A) of the NIRC
 b. RR No. 10-02 dated July 10, 2002
c. Sec. 36(A) of the NIRC
d. Sec. 45 of the NIRC
e. Sec. 34(K) of the NIRC
f. CIR vs. Isabela Cultural Corporation, GR No. 172231 dated February
12, 2007
g. CIR vs. General Foods, Inc., GR No. 143672 dated April 24, 2003
h. Atlas Consolidated Mining & Dev’t Corp., GR No. L-29111 dated January
27, 1981
i. H. Tambunting Pawnshop, Inc. vs. CIR, GR No. 173373 dated July 29,
2013
2. Interest
a. Sec. 34(B)of the NIRC
b. Sec. 36 of the NIRC
c. RR No. 13-00 dated November 20, 2000
d. Tax Arbitrage Rule/Scheme
e. CIR vs. Vda. De Prieto, GR No. L-13912 dated September 30, 1960
f. Paper Industries Corporation of the Philippines vs. CA, GR Nos. 106949-
50 dated December 1, 1995
g. Sky Internet, Inc. vs. CIR, CTA Case No. 6587 dated August 10, 2005
3. Taxes
a. Sec. 34(C)of the NIRC
b. CIR vs. Vda. De Prieto, GR No. L-13912 dated September 30, 1960
4. Losses
a. Sec. 34(D)of the NIRC
b. Casualty Losses
i. RMO 31-09 dated October 16, 2009
ii. H. Tambunting Pawnshop, Inc. vs. CIR, GR No. 173373 dated July
29, 2013
c. Net Operating Loss Carry-Over
i. RR No. 14-01 dated August 27, 2001
ii. Paper Industries Corporation of the Philippines vs. CA, GR Nos.
106949-50 dated December 1, 1995
5. Bad Debts
a. Sec. 34(E)of the NIRC
b. RR No. 5-99
c. Philippine Refining Company vs. CA, GR No. 118794 dated May 8,
1996
d. Fernandez Hermanos vs. CIR, GR No. L-21551 dated September 30,
1969
6. Optional Standard Deduction
a. Sec. 34(L) of the NIRC (as amended by RA 10963)
b. Sec. 8 of RR No. 8-2018 dated January 25, 2018