EXERCISE 24 The proper party to question, or seek a refund of an indirect tax is the statutory taxpayer, the person on whom the tax is imposed by law and who paid the same even if he shifts the burden thereof to another. The contention of Judge Nitafan is wrong. PAGE 3 Income subject to tax, c. Hilario is not required to report income on the condonation considering that the condonation of debt was given without requiring him to render services. Under the tax benefit rule, whenever a bad debt is claimed as deduction from gross income and it resulted to a reduction in its tax liability, the recovery of such is subject to tax. Value-added tax Real property tax Income tax Stock transaction tax Special assessment Occupation tax Estate tax Income tax paid to a foreign country Community tax Excise tax not taxable taxable not taxable not taxable not taxable taxable not taxable taxable if claimed as deduction 8.

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