Practice question
A private issuer sells a bond to fund a commercially useful project and claims CMEPA’s project-specific government-bond exclusion. It relies solely on the project’s public popularity and establishes neither the specified government issuance nor the required statutory determination. Which is correct?
- Popularity automatically establishes exemption
- All bonds are government instruments
- The stated conditions of Section 32(B)(7)(g) are not established by those facts
- Every private investment return is nontaxable
- A public purpose label replaces the issuer condition
Legal references
- RA 12214 (CMEPA), Sections 3-4, 8 and 28, amended NIRC Sections 22, 24 and 32 and transition: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
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