2013 (Taxation) Bar Exam Questions: Essay Question 4

[Discuss/answer the question below. Or see Taxation Instructions; Taxation Essay Questions: 12, 35, 6, 7, 8, 9, 10, 11 and 12; Taxation Multiple Choice Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20; See also 2013 Bar Exam: Information, Discussions, Tips, Questions and Results]


Atty. Gambino is a partner in a general professional partnership. The partnership computes its gross revenues, claims deductions allowed under the Tax Code, and distributes the net income to the partners, including Atty. Gambino, in accordance with its articles of partnership.

In filing his own income tax return, Atty. Gambino claimed deductions that the partnership did not claim, such as purchase of law books, entertainment expenses, car insurance and car depreciation. The BIR disallowed the deductions.

Was the BIR correct? (6%)


  1. No for me, because the GPP is not even a taxable entity , but the computation of net income is like in a corporation for purposes of determining the distributive share of each partner that is why entitled to deductions. On the part of the individual partner who is a taxable entity not being a pure compensation income earner and under business or professional income the same is allowed to claim deductions not previously deducted in the computation of net income of the GPP

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