In 2020, Christina earned the following:

(a) business of doing IT consultancy work. Her clients are all US Companies with no business presence in the Philippines. She sends the output via email. Her total gross receipts is Php 1,000,000. In the process of doing the work, she spent the following:

- Php 200,000 for clothing, bags, shoes, cosmetics.

- Php 10,000 for internet, Php 10,000 for subscriptions, Php 10,000 for transportation, Php 10,000 for utilities costs

(b) business of online selling of luxury bags via Lazada, Shopee and Instagram. Her customers are Filipinos based in the Philippines and Chinese temporarily working in the Philippines. Total gross sales is Php 3,000,000. Total acquisition costs of these bags is Php 1,000,000. Total "facilitation and processing costs" paid to Bureau of Customs is Php 100,000 with no official receipts.

(c) gross salary of Php 1,000,000 a year from being employed as an accountant in a top accounting firm.

(d) She also has a condominium unit in Avida Towers Prime Taft being rented out at Php 15,000 per month. Monthly, she pays Php 2,000 for association dues.

(e) She inherited a lot from her deceased father on January 1, 2021. She eventually sold the lot to her boyfriend on February 14, 2021. At the time of sale: Selling Price - Php 10,000,000. BIR Zonal Value - Php 5,000,000. Fair Market Value per Real Property Tax Declaration Php 4,000,000.

Guide:

- Please make a comparative table on taxability between Sole Proprietorship and Corporation. Discuss itemized deductions, optional standard deductions, 8% rate for mixed income earnings.

- She is also asking if it is more advantageous to form a corporation (regular or one person corporation)? Discuss the advantages and disadvantages on taxability and risks.

- She is asking if it is better for her to establish a sole proprietorship, a one person corporation or a regular corporation? What are the taxes involved?

- Please discuss the BIR returns that needed to be filed and the due dates under sole proprietorship and under corporation.

- Compute for the total taxes paid/payable in 2021. Please indicate the tax type (e.g. capital gains tax, regular income tax, withholding tax on compensation, etc.)

- For her businesses, please discuss and compare "Itemized Deduction" vs. "Optional Standard Deduction".