TIMED TASK

Chief Hong, resident citizen, is a multi-talented person. As such, he was hired by various businesses around Gongjin. (Just assume Gongjin is a place in the Philippines.) At daytime, Chief Hong works as a barista in a coffee shop. From this stint, Chief Hong earns a fixed salary of P25,000 a month (P300,000 a year). At nighttime, Chief Hong is hired by the local government of Gongjin to keep the peace in the neighborhood. From this stint, Chief Hong earns a fixed salary of P30,000 a month (P360,000 a year). Both the owner of the coffee shop and the local government of Gongjin correctly withdraws amounts from the salaries of Chief Hong. Chief Hong received a Notice from the Bureau of Internal Revenue, asking him to explain why he has not filed his income tax return for the past years. Chief Hong argues that he is a purely compensation income earner, and his salary having been withheld correctly by his employers, he is no longer required to file his own income tax return. May Chief Hong avail of the 8% income tax option? Yes. The option is available for mixed income earners, but the 8% shall only apply on the income derived from the conduct of trade and business. No. The option is not available for purely compensation income earner. Yes. The option is available for mixed income earners, and the 8% will apply on the entire income. Yes. The option is available for mixed income earners, but the 8% shall only apply on the income derived from employer-employee relationship