Practice question
A private corporation hires a lawyer subject to professional tax. The lawyer says employment removes the tax duty, and the corporation says only the worker has responsibilities so it need never ask about payment. Which is correct?
- Private employment automatically creates the exclusive-government exemption
- The corporation may always ignore Section 139
- The worker may replace payment with a promise
- Section 139(c) requires the employer to require payment before employment and annually thereafter; private employment does not itself create the stated government exemption
- The corporation may issue a Bar admission certificate instead
Legal references
- https://www.lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html — R.A. No. 7160, Section 139 (professional tax, payment place and time, employer duty, exemption and receipt number).
- https://lawphil.net/courts/rules/pdf/am_24-10-05-sc_2025.pdf — A.M. No. 24-10-05-SC, August 12, 2025, effective November 3, 2025; amended Rule 138 §§1,6–13,15–19.
Answer this question in flashcards to review your response and continue practicing.