Title II — TAX ON INCOME
(P)
The term ‘taxable year’ means the calendar year, or the fiscal year ending
during such calendar year, upon the basis of which the net income is
computed under this Title. ‘Taxable year’ includes, in the case of a return
made for a fractional part of a year under the provisions of this Title or
under rules and regulations prescribed by the Secretary of Finance, upon
recommendation of the Commissioner, the period for which such return is
made.
(Q)
The term ‘fiscal year’ means an accounting period of twelve (12) months
ending on the last day of any month other than December.
(R)
The terms ‘paid or incurred’ and ‘paid or accrued’ shall be construed
according to the method of accounting upon the basis of which the net
income is computed under this Title.
(S)
The term ‘trade or business’ includes the performance of the functions of a
public office.
(T)
The term ‘securities’ means shares of stock in a corporation and rights
to subscribe for or to receive such shares. The term includes bonds,
debentures, notes or certificates, or other evidence of indebtedness,
issued by any corporation, including those issued by a government or
political subdivision thereof, with interest coupons or in registered form.
(U)
The term ‘dealer in securities’ means a merchant of stocks or securities,
whether an individual, partnership or corporation, with an established
place of business, regularly engaged in the purchase of securities and
the resale thereof to customers; that is, one who, as a merchant, buys
securities and re-sells them to customers with a view to the gains and
profits that may be derived therefrom.
(V)
The term ‘bank’ means every banking institution, as defined in Section
2 of Republic Act No. 337, as amended, otherwise known as the General
Banking Act. A bank may either be a commercial bank, a thrift bank, a
development bank, a rural bank or a specialized government bank.
(W) The term ‘non-bank financial intermediary’ means a financial
intermediary, as defined in Section 2(D)(c) of Republic Act No. 337, as
amended, otherwise known as the General Banking Act, authorized by
the Bangko Sentral ng Pilipinas (BSP) to perform quasi-banking activities.
(X)
The term ‘quasi-banking activities’ means borrowing funds from twenty
(20) or more personal or corporate lenders at any one time, through
the issuance, endorsement, or acceptance of debt instruments of any
kind other than deposits for the borrower’s own account, or through
the issuance of certificates of assignment or similar instruments, with
recourse, or of repurchase agreements for purposes of relending or
National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467)
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