CABEIHM

Republic of the Philippines

BATANGAS STATE UNIVERSITY
COLLEGE OF ACCOUNTANCY BUSINESS
ECONOMICS AND
INTERNATIONAL HOSPITALITY MANAGEMENT
CITE Building, Pablo Borbon Campus, Rizal Avenue,
Batangas City

A Final Requirement
Presented to the Faculty of
College of Accountancy, Business, Economics and
International Hospitality Management
Batangas State University
Batangas City

In Partial Fulfillment
Of the Requirements for the Degree of
Bachelor of Science in Management Accounting

TAXATION IN OUR EVERYDAY LIFE

Business and Transfer Taxes

Submitted by:

Jay-R Agojo Maristela

18-59696

Submitted to:
Mr. Mark Paul I. Ramos, CPA

May 25, 2020

TAX
CABEIHM

Interviewer: Jay-R Agojo Maristela

Interviewee: Kriz Anne Zyra P. De Luna
21 years old
Resident of Buso-Buso, Laurel Batangas
3rd Year BSA student from Tanauan Institute
Owner of “SANA ALL” Burger and Fries Shop
Date: May 24, 2021, 4:00 pm-5:00 pm
Agenda: Value Added Tax (VAT)

NARRATIVE REPORT

“Taxes are paid in the sweat of every one who labors.”- Franklin D. Roosevelt

It’s common knowledge for everyone that there are two inevitable things in life:
death and taxation. Today, the vast bulk of our government's revenue comes from
taxes. A tax is not a charitable charge or gift, but rather a government-imposed
contribution. Taxes are sums of money raised by residents and intended to provide
public goods and programs beneficial to our society. Taxes are sums determined by a
legislative mechanism involving structured legislation that decides how the aggregate
expense of government programs will be allocated among public system entities.
However, certain citizens remain unaware of the tax system's beneficial impact, and
instead believe that it just has detrimental consequences. Indeed, few people realize
this, but taxes are one of the most significant sources of income for the government and
one of the primary factors for the country's economic development. Nonetheless, tax
regimes differ significantly across nations, and it is important for individuals and
companies to thoroughly familiarize themselves with the tax laws of a foreign nation
before gaining income or doing business there.
Aforementioned, Filipino people must be aware of the tax we have right now and
its relevance in society. Conversely, as part of our semestral project in TAX 302-
Business and Transfer Taxes, we will need someone as an informant, and we have to
assess their knowledge about tax and other related facts regarding this matter. It is
exciting because, for the first time, I will have this undertaking that will fully grasp the
opinion of others about taxation. Furthermore, to embark on this journey, first, I
assessed who will be my respondent, and basically, the first person who came to my
mind is someone who can help me, an entrepreneur and a student. Thankfully, after a
few inquiries, Ms. Kriz Anne Zyra P. De Luna accepted my request- a 3rd year BSA
student from Tanauan Institute and one of the owners of SANA ALL Burger and Fries
Store in Buso-Buso, Laurel, Batangas. After the acceptance, the story begins here.

TAX
CABEIHM

It was May 24, 2021 at exactly 4:00 in the afternoon when I went to the store of
Ms. Zyra- one day ago after she accepted my request. Actually, I just walked to go there
since it is a walking distance and to personally meet here for the interview. Upon
meeting, we made sure that we have followed the safety protocols, rubbed our hands
with alcohol and sanitizer. I just waited for her for about ten (10) minutes before we
proceed to the interview because she has a lot of customers. And after waiting, we have
started the casual interview and I personally asked my first question which is “Kumusta
ka na friend?”. She answered that question with a big smile and uttered “Okay lang ako
at nalaban sa buhay.” The first ten (10) minutes of our conversation is more of personal
matters because this is my first time again to talk to this friend of mine. It was just so
lovely, fun and serious conversation.

Moreover, after that simple conversation, I proceeded to one of my main agenda

which includes asking some of her ideas about Value Added Tax. The first question that
I brought to the table is the question that aims to assess her basic knowledge about tax
that’s why I asked her “Based on your perspective, what is tax?” She profoundly said
that tax has been introduced to them way back in 2019 in her 2nd year in college and
based on her understanding, tax is the collection of money that is imposed by the
government to use for government spending and public expenditures. She added that
there are several types of taxes including income tax, business tax, sales tax, and the
like. Lastly, she ended her answer by telling the two kinds of tax violations which are tax
evasion and tax avoidance which are distinctly characterized in different manner.

After answering my question which really blew me away, I moved to the next
question which is “What is/are your idea/s about Value Added Tax”? She responded to
my question through her answer saying “If we’ll categorize the different types of tax,
feeling ko and for me, VAT or Value Added Tax is the most well-known kind of tax kasi
ever since nababasa na natin sya sa mga products na binibili natin. Though di natin
talaga alam what is the meaning of that pero I guess kasama na natin ang tax na ito
mula pagkabata. And to answer your question, Value Added Tax (VAT) is a kind of
indirect tax na ipinapatong sa mga serbisyo and produkto na nakikita natin sa merkado.
Indirect tax kasi ang final customer na mismo ang nagbabayad ng tax na ito and not the
directly the person or business establishment. Well, actually if I am to recall and If I’m
not mistaken, this tax has been introduced to eliminate the double taxation here in the
Philippines. And of course, there are exemptions from VAT, either tao or mismong
transaction. For now, ay yun na lang muna ang ibabahagi ko kasi medyo madami-dami
at mahaba-haba kapag sinama ko pa yun haha.”

After that answer, I just stopped for a moment and tell myself that “Yeah, she’s
really my friend, haha.” I didn’t expect that this conversation will be good as to what
happened exactly that time. After being mesmerized and speechless, I asked my follow-

TAX
CABEIHM

up question which is “Can you cite some ways of computing the Value Added Tax?” She
answered it directly telling “Di ko sure ha pero kasi may iba’t ibang ways on how to
compute VAT. There are circumstances na gagamitin ang 12% and may pagkakataon
naman na ginagamit ang 12%/112% or 3/28.” And by that, I couldn’t even agree more.

Proceeding to my last question, I asked her a question which is more personal

and it aims to assess her understanding about Value Added Tax and its contribution for
her, and so I asked “For you, what is the contribution of Tax and how did you apply your
knowledge about tax in your business and everyday lives?” Actually, she laughed at me
before answering and asked how many more questions to go and then I said that would
be the last question. And after so many segue, she responded to that question with “Sa
tunay, bilang isang Pilipino, malaki ang ambag ng buwis dahil syempre ito ang
nagbibigay sa bansa at gobyerno natin ng pondo para maisakatuparan ang iba’t ibang
proyekto at serbisyo. Alam ko na para sa mga business owners ay burden lang ang tax
pero if we’ll look at the bigger picture mas magiging burdensome ang mga sitwasyon
para sa lahat kung walang tax o buwis na nakokolekta. And I think nai-aaply ko ang
lahat ng nalalaman ko sa tax by looking in every situation since accounting student ako
ay kailangan kong maging familiar sa mga bagay na ito kasi ito ay blueprint or
foundation once maging ganap na CPA na ako at professional. And sa business ko
naman, sana lumaki pa sya ng lumaki kasi feeling ko magagamit ko ang kaalaman ko
sa Tax kasi syempre iba ang may alam. If I know pano magfile at magcompute ng tax
ay hindi ako madadaya at hindi ako maloloko.Yun lang.”
After hearing all her answers, I think that concludes our conversation because I
can’t help myself to add something ‘cause I think, all I knew was being mentioned by
her already. However, I owe it to her to share something that’s why I gave a simple
pamphlet which is handwritten by yours truly as a remembrance of that momentous
event. It includes some facts about Value Added Tax, its nature, and basically how to
compute VAT when the amount includes the tax and certainly when the amount doesn’t
include the tax. I discussed that to her and after a few minutes of discussion and
sharing, we’ve ended the conversation and have a photo opportunity. Indeed, that
fruitful conversation is worthy to be treasured.
Heading way back home, I just felt that my heart is beyond grateful for having
Ms. Zyra as my interviewee because we have the same thought patterns regarding that
matter and I love how she looked from a different perspective and in each area the
moment I asked her a question. More so, the quotation that I’ve attached on the back of
the pamphlet has marked on my mind which says that “Taxes are paid in the sweat of
everyone who labors.” by Franklin D. Roosevelt. It’s true that the lifeblood of the
government is the tax but that tax will not exist without all of the people who pay for it. If
tax is the lifeblood, then the taxpayers are the anatomy who provide that lifeblood. And
it’s something that we should be grateful for because Filipino people are working for all
of the Filipinos, to live and to have a better nation. And I think the last call would be in
the

TAX
CABEIHM

hand of the government. Since they have the power and authority then in all ways, the
action should not stop and the sweat of all laborers must be paid off. By the Taxpayers.
For the Country. For the future.

DOCUMENTATION

Ms. Kriz Anne Zyra P. De Luna with her business

“SANA ALL”.

TAX
CABEIHM

Sharing and Discussion of Jay-R and

Zyra

TAX
CABEIHM

Photo of Jay-R and Zyra after the interview.

TAX
CABEIHM

Photo of the Pamphlet

(Cover)

TAX
CABEIHM

Photo of the Pamphlet (Content)

K
-

TAX