(10%)
Noel Santos is a very bright computer science graduate. He was hired by Hewlett Packard. To entice him to accept the offer for employment, he was offered the arrangement that part of his compensation would be an insurance policy with a face value of P20 Million. The parents of Noel are made the beneficiaries of the insurance policy.
a) Will the proceeds of the insurance form part of the income of the parents of Noel and be subject to income tax? Reason briefly.
b) Can the company deduct from its gross income the amount of the premium? Reason briefly.
Showing posts with label insurance. Show all posts
Showing posts with label insurance. Show all posts
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