2016 (Taxation) Bar Exam Questions: Question 20

[Answer/discuss the question below, or see 2016 bar exam Taxation Instructions; 2016 Labor Law Questions:   123456789101112131415161718, and 19;  See also 2016 Bar Exam: Information, Discussions, Tips, Questions and Results]

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Patrick is a successful businessman in the United States and he is a sole proprietor of a supermarket which has a gross sales of $10 million and an annual income of $3 million. He went to the Philippines on a visit and, in a party, he saw Atty. Agaton who boasts ofbeing a tax expert. Patrick asks Atty. Agaton: ifhe (Patrick) decides to reacquire his Philippine citizenship under RA 9225, establish residence in this country, and open a supermarket in Makati City, will the BIR tax him on the income he earns from his U.S. business? If you were Atty. Agaton, what advice will you give Patrick? (5%)

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