Question: The Ambassador of the United States of America decided to go on vacation in the Shangrila

Hotel in Boracay, he stayed there for a week enjoying the beautiful waters and beaches of Boracay. On his
departure from the hotel, he was presented with a bill for his stay, to which he noticed that he was being
imposed the VAT of 12% as part of the bill. He refused to pay the same because he is entitled to tax
exemptions in the Philippines, being an ambassador assigned to the Philippines. The hotel argued that
since he there on his personal capacity, the privileges granted to him were just like any ordinary person.
The ambassador is
correct in insisting on his privileges because of the principles of international comity in taxation
correct in insisting on his privileges because he represents the most powerful nation in the world
incorrect because he was acting as a private citizen during the period
incorrect because as a temporary resident in the Philippines, he is required to contribute to the Philippine
coffers, regardless of his length of stay in the Philippines