Taxation, 2012 Bar — Question 29

MULTIPLE CHOICE

MBM Corporation is the owner-operator of movie houses in Cavite. During the year 2010, it received a total gross receipts of P20 Million from the operation of movies. It did not register as a VAT person. Which statement below is correct? a) MBM Corporation is exempt from the 12% VAT, but liable for the 20% amusement tax on admissions under the Local Government Code; b) MBM Corporation is both liable for the 12% VAT and 20% amusement tax on admissions; c) MBM Corporation is both exempt from the 12% VAT and 20% amusement tax on admissions; d) MBM Corporation is liable for the 12% VAT, but exempt from the 20% amusement tax on admissions.

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