I am Roderick Morante 22 years old living at Antiplolo city and i have a research study can you help me??
Problem: Ms. X borrowed money to Mr. A an amount of 9M. Ms. X didn’t pay her obligation to Mr. A for 3 years that makes her debt to become 18M because of the interest of 9M occurred for 3 years. However because of the foreclosure of the property of Ms. X she able to auction her property and the highest bidder is also the creditor which is Mr. A. There is no payment happened for the property but obligation of Ms. X was been cancelled. The question is, Is Mr. A should file his interest income to BIR for 2013? Even though he hadn’t received any payment for Ms X for her debt. Can Mr A pay his tax for next year? Thank you for your response in advance.
Thank you and Godbless,