00:00To page 2 of the AITR, Schedule 2 shows the taxable compensation income, correct?
00:11Yes.
00:14Number 6.
00:24Can you see it on the screen now?
00:26Yes, Your Honor. Very clearly, Your Honor.
00:30It shows the gross compensation income and the non-taxable or exempt compensation income.
00:40Do you see that?
00:42Correct.
00:45Under that portion, it doesn't show any deduction for living or family expenses.
00:54Opo, wala po.
00:55Okay.
00:56Let's go to Schedule 3 of the AITR.
00:59Here, still on page 2, it shows the total business income, correct?
01:11Yes, po.
01:12Okay.
01:12Item 8 shows the gross sales revenues or receipts or fees earned from business, correct?
01:20Correct, po.
01:21Item 9, please bear with me, shows sales returns and discounts which are deductible from gross sales or revenues, correct?
01:31Tama, po.
01:33Item 10 shows the net sales or net revenues, correct?
01:39Tama, po.
01:40Then from the net sales and revenues, you will deduct the cost of sales or cost of services to get
01:48the gross income from operations.
01:50Tama, po.
01:51And if you can recall, cost of services shall mean all direct costs and expenses necessarily incurred to provide the
02:06services required by the customers and clients.
02:10Tama, po.
02:11Your Honor, just to manifest, are we having a tutorial on what the tax form contains, Your Honor?
02:17Actually, I'm learning, Attorney Irwin.
02:22But yes, Attorney Christine, you're going to a point, right?
02:25Yes, Your Honor.
02:26Yes.
02:27Please proceed.
02:28Kindly, if you can abbreviate it, kindly do so.
02:31But if not, we're learning.
02:33At least you're learning, Your Honor.
02:36In short, the cost of sales are direct costs of the business.
02:40Tama, po.
02:41Okay.
02:42The cost of services are business expenses.
02:47The cost of services?
02:49Anyway, I'll ask another question.
02:52Now, in computing the gross income, it does not include the living or family expenses of the business owner.
03:01Ah, hindi po.
03:02Okay.
03:05The cost of sales.
03:06The cost of sales.
03:09The cost of sales.
03:14You
