Taxing the "Pambansang Kamao (National Fist)"

From 1988 to 1989, I worked as a Tax Accountant (handling Philippine taxation) for a Law Firm in Makati. Then from 1989 to 1991, I worked as Chief Accountant and as Tax Associate (handling US, Hong Kong, and International taxation) for the Hong Kong branch of the Romulo Law Office. That was more than 20 years ago, and therefore I cannot anymore even the slightest bit consider myself an expert in taxation. Hence, these days, any opinion I have on taxation can only be considered as a layman's opinion, not as an expert's opinion. Pertinently, in my line of work, whenever I deal with taxation issues I can only do so as a “generalist,” and I have to work with fellow CPAs and/or with Tax Lawyers who are the “specialists.”

That said, allow me to share my layman’s perspective on this current tax issue that confronts our “Pambansang Kamao.” To simplify matters, I will focus only on his earnings from the US (and not Macao or wherever else).

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Please consider the following:

* If you work in the Philippines, surely you are aware that taxes are immediately deducted and withheld from your earnings. Your employer, or whomever else is the source of your earnings, is "obligated by law" to immediately withhold your taxes. Therefore whether you like it or not, whether you are diligent about paying your taxes or not, or whether you are even aware about it or not, you will definitely still end up paying your taxes. Meanwhile, Philippine Tax laws, just like most other Philippine laws, were originally copied from the laws of the United States. Hence, since Philippine tax laws and US tax laws are similar, I think it is safe to assume that if you earn income in the US, then your taxes are immediately withheld, just like in the Philippines.

* If you live and work in the Philippines, then you will be using and taking advantage of infrastructure and other resources that are available to you in the Philippines. The roads you travel on, the street lamps that light your way, the traffic enforcers that direct your commute, the police force that ensure your safety, and countless other resources. Whether you like it or not, you will be using all of these resources, and they all cost money. This is why you pay taxes to the Philippine government.

* In the same light, if you work in the US, then you will be taking advantage of their resources, thus you will have to pay taxes to the US, not the Philippines.

* If you work and derive earnings in the US, then you must pay US Tax Rates that are more than 30%. Hypothetically speaking, if you will also still have to pay the Philippine government for another layer of taxes that are also worth more than 30% (please note that I am exaggerating in order to drive home a point), then your total taxes will add up to as much 65%, leaving you only 35% for your net take home pay. With a 35% net take home pay, you will only have enough money left to pay for your food and shelter so that you can continue working. In other words, you live to work to live to work, reduced to a robotic existence. In which case, Filipinos might as well never work in the US (or anywhere else abroad) anymore. Pertinently, this is why double taxation is not allowed. (Please note that US tax rates might even be higher than Philippine tax rates, please see http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Marginal_tax_rates_for_2013.)

* Based on all the foregoing premises, I think it is safe to assume that when Manny fought in the ring and earned his income in the US, he automatically already paid taxes. There may have been some lapses on his part when it comes to furnishing the Philippine BIR with copies of tax returns and related documents that he submitted to the US Internal Revenue Services or IRS (which is the counterpart of the Philippine Bureau of Internal Revenue or BIR), but IN PRINCIPLE it is unlikely that he has actually committed anything worth being punished for. Come to think of it, since Manny earned much of his boxing income in the US, then if he indeed committed any form of tax evasion, it is the US government (specifically he IRS) that would have already and immediately gone after him. It's really that simple, nothing complicated.

* Moreover, although he did not anymore have to pay taxes to the Philippines, the fact of the matter is that he still remitted a great deal of his "Net-Income-After-Taxes" back to the Philippines -- Paying the salaries of his very many Filipino employees (who are therefore able to support their families), purchasing Philippine commodities and properties, donating to Philippine charities, etc., etc., in other words significantly contributing to the Philippine economy. Come to think of it, isn’t it that the one of the primary reasons that our nation is still able to survive, despite all the corrupt and wealth-grabbing politicians, is that we have so many Filipinos who, just like Manny, work and pay taxes abroad, but remit the rest of their earnings to the Philippines?

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* To be perfectly honest, when the news first broke out, I could not understand why they were suddenly going after Manny. It was only after I got to read the two articles posted here below that I finally understood what the tax drama was all about. Like I said, I am merely a “generalist,” and thus what I have written above are merely my “generalist” opinion. To read the opinions of the “specialists” or the “experts,” I respectfully recommend that you please click on the following:

(1) “Manny Pacquiao, the BIR, and Taxation's Power to Destroy” by Atty. Mel Sta. Maria
http://www.interaksyon.com/article/75788/mel-sta--maria--manny-pacquiao-the-bir-and-taxations-power-to-destroy

(2) “Pacquiao – Latest Victim of Hold-order Mindset” by Federico D. Pascual Jr.
http://www.philstar.com/opinion/2013/11/28/1261787/pacquiao-latest-victim-hold-order-mindset

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* FINALLY, they say that they are not harassing Manny. Well, this is what I have to say about that:

-- Have you ever experienced receiving a Meralco bill that indicated that your electric bill for the current month is greater than your electric bill for the previous month by as much P1,000? How did you feel? Were you able to sleep that night? Can you imagine therefore what it feels like to receive word that you might owe tax charges of as much as P2.2Billion?

-- Many people say that Manny, or more specifically Manny’s accountants and lawyers, will eventually be able to smoothen all this out, because it’s all just a matter of documentation. I agree. But still, great anxiety and significant grief have already been caused. Indeed, Mommy Dionisia has already been rattled to the bones and made ballistically upset – thank God she did not suffer a heart attack. In other words, the damage has already been done. In most other circumstances, if someone causes you that same level of grief and anxiety, you can sue them for damages, right? But in this case, after the case is finally smoothened out and resolved (which I hope will indeed eventually happen), after all is said and done, Manny's persecutors will probably just shrug it off and pretend it didn't happen. "Kung sobra mang nasaktan at sumama ang loob ni Manny at ng pamilya niya, then sorry na lang, ganun talaga eh." "Wala lang."

-- Manny has already brought so much honor to the country. Yes there are other Filipinos who have also brought honor to the country, such as Lea Salonga, Charice Pempengco, Arnel Pineda, etc., but I think it is safe to say that they -- perhaps even all of them combined -- pale in comparison to Manny. Indeed, Jessica Sanchez (who may even be more famous than the three singers that I have just mentioned) was recently merely a front act for Manny at Macau. Truth be told, I think that the only way that a Filipino (who is not the country's president) can outshine Manny on the world stage is by winning the Nobel Prize. Seriously.

-- Decades ago, the Philippines was unheard of in many parts of the world. Now, when we get hit by a super typhoon, the whole world rushes to our aid, and I think we have gained recognition and respect worldwide because of people like Manny.

-- Therefore, considering that there is a good chance that Manny may have actually already paid all (or at least most of) the taxes that he has to pay, and considering that he has already brought so much honor to the country, is it too much to ask that instead of persecuting him, that they should instead just persistently try to reach out to him and patiently guide him? After all, they have already been far more patient with so many other individuals or companies who are the actual and bigger tax evaders. Any way you look at it, slapping Manny with a notice for a P2.2Billion tax charge (even if it is merely a potential tax charge), and freezing some of his assets a day after he has just brought honor to the country, simply leaves a bad taste in the mouth.

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Rules of Engagement

I. Arguing vis-à-vis Expressing

I can see a lot of heated arguments on FB and on other internet-based fora regarding PNoy's performance as president in the face of super typhoon Yolanda.  There are those who give him the benefit of the doubt, and there are those who choose not to – not anymore.  (I do not consider myself as either outright pro-PNoy or outright anti-PNoy, I prefer not to have a fixed and permanent opinion of him.  I discern on a case to case basis and I try to keep an open mind.)

I can also see that most of the arguments show no promise of resolution and will simply spiral.  Quite typical of arguments involving government and politics.  Therefore, participating in such arguments, in my opinion, is basically pointless -- and thus I choose not to.

Rules for Discussion

 

However, a person can still express his/her opinion without necessarily engaging in any argument.  For instance, he can express his opinion on his own wall, while steering clear of opposing views in other people's walls. 

After all, a person can express her views simply because she wants to -- which is her basic right -- and not because she wants to argue with anyone.  She can also express her views to affirm others who share the same beliefs, or to provide insights to those who are still in the process of forming their own opinions.

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II. There is a Right Time and Place

Recently I had a very heated but also very short-lived “debate” with a former schoolmate, in FB.  I wrote a comment on my wall, and this former schoolmate of mine opposed what I said -- on my very same wall.  

But our pertinent comments are not there anymore, we already deleted them, as I said it was a “short-lived” debate. We agreed to abort the debate because it might undermine our friendship.  I do know of people here in FB who used to be friends but who eventually “un-friended” after slugging it out on Democrat versus Republican issues.   The best of friends can become the worst of enemies because of political differences, right or wrong it is true, and thus it may be best to be cognizant and wary of that reality.

At any rate, this schoolmate of mine explained to me (in a private message) that the only reason he opposed my views is that I put it out there.  Since I made my views public, then it meant that I welcomed opposing views, because FB is a public forum.  He made an excellent point, one that I would not argue against.

However, I would like to offer another school of thought.  The thing is, FB may simply be an outlet where you express yourself.  Because sometimes, you do just want to express yourself.  And although you strive to make sense in order to make a contribution to the collective intellect of cyberspace, you don’t necessarily want to engage in a real argument because that is just too much work.  Particularly if people have certain expectations of you, if you ever engage in a debate then you will really have to bring it on – which, as I said, is just too much work.

I’m not saying that people should never express opposing opinions on your wall.  But perhaps when it comes to very hot and divisive topics like politics, and particularly during times that people are more emotionally involved such as in the aftermath of the Yolanda typhoon (or perhaps during election period), then perhaps it is best to be prudent and to tread with caution.  Just like at home or in the office, if your family or colleague says something in frustration, unless the situation really calls for it then it is best not to argue with him on the spot, you wait for the right time and circumstance to do so.  Who knows, he might even retract what he said before you actually get to speak with him.

Besides, there are, after all, internet-based fora out there where engaging in debate is the norm and where you can therefore debate to your heart’s content.  For instance, in the comment sections of CNN, Rappler, and the like, or even in cause-oriented pages on FB.  If you really want to engage in intellectual discourse to further or defend your cause, then perhaps those are the better venues.  But as far as personal pages on FB are concerned, it might be best to discern before you throw down the gauntlet.

Right now I have this friend who is really REALLY expressing his views on his FB wall and his views are quite opposite mine.  I respect him for that and I don’t dare mess with him.   Even if he will tell me that it’s okay to do so, I won’t risk it, as far as I am concerned it’s just not worth it.

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III. Private Individual vis-à-vis Public Servant

When it comes to private individuals, we must presume innocence unless guilt is thoroughly proven.

But when it comes to public servants (especially people in very high places of power), although we should not immediately presume guilt, we should not presume innocence either.  We must bear in mind that they have all the skills, the resources, and the power to hide the truth.  Therefore if we will not say a word unless we have the complete and unassailable set of evidence, then we may never be able to say anything. 

Besides, PNoy does say that we are his bosses, which after all is not just a figure of speech but is actually the truth. 

Please bear in mind, at home or in the office, if you are the boss, isn’t it that you can question your subordinate anytime, whether or not you have solid and definitive evidence that he has done something wrong?  It a basic practice of quality control, and it is the inherent right and unquestionable prerogative of a boss.

If you can only question someone if you have a complete set of solid, definitive, and water-tight evidence, then you are not his boss.  It’s the other way around.

(Please note that I did not criticize PNoy here, I merely suggested that we as citizens have a right to criticize him as president.)

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IV. Freedom of Speech

Now, there are these messages going around that basically suggest that people should be silent, that they should not criticize, and just focus on helping the typhoon victims.  I think it is safe to say that those messages are more likely intended for the people who criticize PNoy. 

To my friends who have been passing those sort of messages around, I’m sorry, you know I love you, but that just isn’t cool.  That approach is somewhat “passive-aggressive,” and can also be considered as an “unfair fighting tactic.” 

-- It is “passive-aggressive” because while there is the nice (or passive) overtone that suggests that we should just focus on helping the typhoon victims, there is also the not so nice (or aggressive) undertone that suggests that some people should just shut up. 

-- It is also an “unfair fighting tactic” because while the message is subtle and not “in your face,” it is still ultimately meant to invalidate the people who criticize PNoy.

Besides, just because a person is expressing his views, it doesn't mean that he has not done anything else.  It is perfectly possible to express one's views about the government, while also quietly extending help to the victims of Yolanda. 

And even if indeed a person just wishes to speak her mind, then she is within her rights to do so.  It is a basic human right. 

Moreover, let us all please keep in mind that one of the chief reasons that our country finds it difficult to progress is that we are way too forgiving, we give people the benefit of the doubt way too much.  The Marcoses are back, and not only are they back but they are in Congress.  Estrada is now Mayor of Manila, and only because he did not win the 2010 presidential race which he was very freely allowed to join despite having been pronounced guilty of plunder by the Sandiganbayan in 2007. 

I think it is a good sign that people -- if they find it necessary -- are willing and able to openly express their views against the government.  And fortunately they also finally have the means to do it, specifically through social media. 

It also greatly helps to know that you are not alone, I for one am not afraid to exercise my freedom of speech because I know that we are many (and that I will not be singled out), there is truly strength in numbers.   As I stated at the onset, one of the important reasons that we express ourselves is so that we can affirm and support others who share the same beliefs.

It is democracy at work, and we've come a long way from the repression of dictatorship and martial law.

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V. Proposed Rules of Engagement

In conclusion, allow me to propose the following rules of engagement:

1. In a forum that is clearly intended to serve as a venue for debate, be it in FB or CNN or wherever, by all means go ahead and state your case, and/or argue against what others have to say, you have a right to do that.

2. But in a platform that is not guaranteed to be a forum for debate (such as personal FB walls), it might be wise to be prudent and to tread with caution.

3. On your own wall, by all means please speak your mind, you have a right do that.

-- I will respectfully read your comment and truly contemplate on it.  I can’t promise that I will agree, but I promise to seriously consider.

Graham's Hierarchy of Disagreement

-- If I will write a comment on your wall, before doing so I will thoroughly think about what I will say, and I will make sure that what I will write is complete, logical, diplomatic, and respectful.  I will not write a lazy and impulsive rant.  I am just a guest on your wall, and thus I promise to properly behave as one.

-- I will not write anything on your wall with the overtone that I agree with you but with the undertone that I actually don’t.  In other words I will be neither sarcastic nor passive-aggressive.  I know that you are intelligent enough to know my true intentions, and I dare not insult your intelligence.

-- If you don’t like what I write on your wall and you feel like deleting it, then please go right ahead.  It’s your wall and thus I respect your right to manage it any way you want.

4. As far as my own wall is concerned, please do for me as I will do for you, as I have just explained.  And if you simply wish to ignore what I have to say, then by all means please do so, you have a right to do that.  But please do not tell me to quiet down, because you do not have the right to do that.

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REFERENCES

How to Have a Rational Discussion

http://www.forbes.com/sites/shenegotiates/2011/09/28/how-to-have-a-rational-discussion-infographic/

Argument

http://en.wikipedia.org/wiki/Logical_argument

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RECOMMENDED READING

Straight and Crooked Thinking

– http://neglectedbooks.com/Straight_and_Crooked_Thinking.pdf  

– http://en.wikipedia.org/wiki/Straight_and_Crooked_Thinking 

Don’t Get Defensive: Communication Tips for the Vigilant

http://blogs.hbr.org/2013/11/dont-get-defensive-communication-tips-for-the-vigilant/

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Assertive in Silence

Sometimes, the best way to assert yourself is by becoming silent, especially if you have already spoken your mind quite a bit but they still turn a deaf ear. People know exactly how they are treating you, you don’t need to tell them. In fact the more you "pursue a dialogue," the more opportunity you give them to make excuses and rationalize what they are doing in order to mitigate their guilt and wash their hands.  It becomes even worse when they start to make it sound like you are being petty and troublesome, and consequently all of a sudden you seem to be the one at fault.  Insult is thus added to injury.

"Go ahead and keep doing what you're doing, but you are not fooling anyone, certainly not me."  That is the message you send when someone tries to pull your leg and you respond with quiet dignity, neither pleased nor angry, but civil, always civil, uttering no more than a few simple "sure" or "fine." 

With your silence you signify that you are not interested in playing games, stooping to their level of immaturity.  They can have things their way, for instance they might be reneging on tacit agreements and breaking real promises, or even trying to bully you perhaps, because they are in power and your are not.  But at least with your silence you signify that you are not blind to what’s really going on, and that you are intelligent, and essentially still one step ahead. 

Balance is always restored in time.  God does not sleep. 

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Finance is a Vast Universe

In the practice of my profession, my fortes are Financial Accounting, Management Accounting, Management Services, Accounting Administration, etc. These are disciplines that focus on the financial management of an organization, one organization at a time, and does not delve into analyzing entire industries.

In my experience, most people do not realize that Finance is a vast universe, and just like Medicine it has many specializations. When people seek the help of a medical doctor, they know right away that there is a specialization for each ailment, and therefore they seek right away the appropriate specialist.

But in the case of Finance, once you introduce yourself as a Finance Professional, people usually think you know everything and therefore they can ask you anything, from Job Order Costing to Foreign Exchange Management, from Constructive Accounting to Hedging, etc. Even External Audit is quite different from Internal Audit, but most people think Audit is just Audit and that's it.

The funny thing is, many Finance professionals are themselves not aware of -- or refuse to accept -- the forgoing truth and reality. Some of them are even so unenlightened that they quite obviously believe that whatever field of Finance they happen to specialize in is actually that only field that deserves to be referred to as "Finance."

This lack of awareness among Finance Professionals, and/or their lack of willingness to acknowledge the truth, plus the similar lack of awareness among their clients, is perhaps one of the causes of the current dismal state of the global economy. Just imagine a medical hospital where specializations are not clearly identified, and most of the doctors do not honestly acknowledge their limitations and are free and trusted to deal with just about any physical ailment. What would you think is going to happen?

Whenever you seek the help of a medical doctor, you will notice that he or she will readily refer you to another doctor if necessary. But if you seek the help of a Finance consultant, in most cases you will notice that he or she will have an answer for just about anything, and will hardly ever refer you to another Finance expert -- unless that other Finance expert is somehow under his or her control and will not "steal" you as a client.

Leadership and Management in Business and in the Academe

I recently read an article about Cathie Black, former chairman of Hearst Magazines and author of Basic Black (one of my favorite practical books on Management), not quite making it as Chancellor of the New York City Schools. Extremely successful in business but not so in the academe, this just goes to show that the key success factors for leadership and management in business are not quite the same as the key success factors for leadership and management in education.  Indeed I have observed that successful leaders and managers in the business sector don’t necessarily fully understand what would be required of them as leaders and managers if they cross-over to the education sector - Cathie Black would be the perfect example.  The same thing applies to successful leaders and managers in the academe if they cross-over to business.


Incidentally, I don’t recall ever encountering any material that was written on the subject of crossing over between business and academe.  Therefore I hope to do pertinent research some day. After all I can understand and empathize with leaders and managers in  both the business and education sectors because I have operated in both . Indeed this was the first topic I contemplated on when I was about to start work on my doctoral dissertation.

Meanwhile, some of the salient features of educational administration which makes its very different from business administration, as I could theorize offhand, are as follows:

•  THE FINANCIAL GOALS FOR A EDUCATIONAL INSTITUTIONS ARE DIFFERENT.  Profit-Oriented Business Entities always aim for optimum revenue.  The pressure is always great as far as generating sales are concerned.  “Making money,” is the order of the day, and this goal is usually reflected in the materialistic culture of the organization.  However, in the case of an educational institution, the goals are different.  The goals are not to makes sales, but to create as many Centers of Excellence, to assimilate as many qualified PhD-holders in the faculty, to produce the best graduates, and so forth.  Indeed, while business enterprises always aim to increase sales, the best schools on the other hand normally put a ceiling on their sales level by limiting its student intake.  From the Education perspective, it is a wise aim because it preserves the excellent quality of the student body.  However, from a strictly “money-making” Financial perspective, it is simply unheard of. 

•  A SCHOOL IS AN EGALITARIAN ORGANIZATION.  Profit-Oriented Business Entities are authoritarian.  Thus, someone such as the Financial Controller can quite literally “control.”  However, an educational institution (especially if it is a major university) is an egalitarian community of intellectuals, where everyone is perfectly capable of questioning everyone else, especially the administrators. 

•  WORKING FOR A SCHOOL IS AN EXERCISE IN HUMILITY AND ALTRUISM.  In the Business Industry, the Chief Executives (CEO, COO, CFO) are among the most well compensated and respected, not only for the volume and difficulty of their work, but also for the risks they manage.  However, such is not necessarily the case for a School Administrator.  He must prepare to work harder, but for less – both in terms of material rewards, and in terms of power and stature (precisely because of the egalitarian nature of the organization).  It certainly helps therefore, if the said Administrator has the altruistic heart of an educator. 

•  THE ETHICAL STANDARDS OF A SCHOOL ARE HIGHER.  Finally, Profit-Oriented Business Entities are ethical, however educational institutions are even more so.  In the case of a school owned and run by a religious orders, its ethical culture is even amplified by its religious backbone.    Thus, not only must the Administrator have the altruistic heart of an educator as aforementioned, he must also be able to conduct his duties in a manner that is definitely beyond reproach.   

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How to Prepare for a Major Exam

An Instructional Essay

“A Letter to My Nephew – How to Prepare for a Major Exam”

To all my fellow Uncles,

and to all the Parents, Grandparents, Aunts, and Guardians out there,

please know that I also wrote this for your Children

– on behalf of You.

My Dearest Miguel,

Congratulations on your recent graduation from Mapua, and on your recent completion of your Cisco training. I am very proud of you, and I praise and thank God for your achievements.

Now that you are preparing for the board exam, I decided to write this article especially for you.

When the time comes for Mariz to take her own board exam, and when Luiz is old enough to take his own board and/or bar exam, please encourage them the way I am encouraging you now. (My Dearest Mariz and Luiz, This is of course also for you.)

Your Mama, Papa, Kid Sister (Mariz), Baby Brother (Luiz), Grandma (“Mommy”), and I love you very much. We pray for your success as regards your forthcoming board exam, and we will always pray for you as regards everything else in life.

God bless you always,

Tito Jun

Manila, July 7, 2011

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HOW TO PREPARE FOR A MAJOR EXAM

Rule No. 1 – Study one page at a time, solve exercises one paper at a time.

That is really all that you can do.

· There is no point in worrying about how well you will do with the exam. Worrying about it will not accomplish anything.

· All you can do now is to perform the simplest nature of your work, which is to read your review materials one page at a time, and to solve practice tests or solve exercises one paper at a time. Think of it this way, if you were a runner, then all you should be focusing on is “just putting one foot in front of the other.” Similarly therefore, “just study one page at a time, and solve exercises one paper at a time.” That’s all, no need to think about anything else.

· And remember that quality matters more than quantity. There is no point in having lots of books or review materials (to give yourself a false sense of security) if you cannot actually review all of them. Just choose the right amount of books and review materials that will really help you, and stick to them.

Rule No. 2 – Just focus on what you are doing, do not look around too much.

Do not worry about things beyond your control, and ignore the things around you that are not relevant to your review.

· If you have family, friends, or even former classmates who have already taken and passed the board exam, don’t let their achievements intimidate and pressure you.

· If you are attending a review school where you have classmates who came from other colleges or universities, and if these classmates seem brighter, faster, and better prepared, and the colleges or universities they came from seem more prestigious than your own, then just tell yourself,

- “Okay, fine, they seem brighter, and they come from schools that are apparently more prestigious, but they have absolutely nothing to do with me and my own performance. Therefore I will just ignore them and I will keep doing what I am doing, focusing on my own review, according to my own style, according to my own pace, and according to my own personal best.”

· Don’t keep looking around to see where you “stand in the race.” Don’t keep checking whether you are ahead, at par, or behind. (And this doesn’t only apply to the work of studying and preparing for a major exam, it also applies to life and career in general.)

Rule No. 3 – Study according to your own learning style.

Do what works for you, and be prepared to accept partial understanding while in the classroom.

· If you are reviewing for a board or bar exam, it means that you already have a level of intelligence and a style of learning that is adequate, simply because it was enough to enable you to finish college (or medical school or law school). Therefore it is best that you continue to remain confident about your capabilities.

· If for some reasons the teaching style at your review school is something that you are not used to, or is something that is not working entirely for you, then while you are in class be prepared to accept partial understanding. Just review by yourself at home, it’s as simple as that.

Rule no. 4 – Do plenty of seatworks and homeworks, and take plenty of practice tests.

The exercise of taking tests is a skill by itself. It is not enough to possess knowledge, you must also be conditioned to take tests.

· Therefore apart from reading books and reviewing materials, you must also practice taking tests by frequently solving problems and exercises, preferably under time pressure. Remember, “Practice makes perfect.”

· There will be good days and there will be bad days. Good days are the days you feel sharp and energetic, and you get good results from your practice tests. Bad days are the days that you feel dull and tired, and the results of your practice tests are not so great. It’s okay to have bad days, that’s normal. If you are the kind of person who has finished college, then most likely you are the kind of person whose good days significantly outnumber the bad, therefore you will be fine and you have nothing to worry about.

Rule No. 5 – Keep in mind, this is a marathon, not a sprint.

Therefore you need to sustain your energy, enthusiasm, and performance for a long period – which in your case is five months, because that is the length of your review.

· Eat properly, try to get some exercise, and enjoy your family and friends.

· Try not to overwork yourself from the very beginning. Just like in running a marathon, you don’t run too fast at the start, because you will immediately get exhausted and not anymore have any energy towards the end.

- In his recent advertisement for Hewlett Packard, Manny Pacquiao stated that he trains most intensively for the last eight weeks, right before his fight. I suggest you do the same. Please see

http://www.youtube.com/watch?v=Ycv6ZGAMAf0&NR=1 or

http://www.youtube.com/watch?v=TeTfuulqKQA.

- (Note: I'm not exactly a fan of boxing, but if the foregoing youtube videos will help get the message across, then I have no problem using them.)

· I’m not saying that you should relax and take it too easy for the first three months of your review and then work hard only during the last two months. You should do your best from the very start and all throughout. But be careful not to burn out and lose energy towards the end of your review up to the days of the board exam themselves, because that is when your performance will matter the most.

Rule No. 6 – In case you also happen to be working, then believe that it can still work out.

Someday, you might take another major exam, and by then you may already be working. Pertinently, if you happen to be working while you are also reviewing for a board or a bar exam, don’t think of it as a hindrance.

· Keep in mind that a lot of people finish college (as well as medical school or law school or graduate school), and they eventually pass their respective board exams (or their bar exams or comprehensive exams) by attending school only in the evening because they have to work and make a living during the day. Therefore, if they can do it, then you can do it. It is not impossible.

· Accept the fact that you need to work to make a living, in fact be glad that you have work and are able to make a living. Then just do your best with your review. It’s really as simple as that.

Rule No. 7 – On the last couple of days before the exam, just relax.

Try to get some rest the last couple of days before the exam.

· It may be difficult to stay away from your books and completely stop reviewing, but at least try to be more relaxed. Five months of review, the last eight weeks being more intensive (the way Manny Pacquiao does it), will be adequate. On the last couple of days right before the day of the exam itself, try to relax. Get some rest, watch a movie, eat well.

· The day before the exam, be sure to prepare your exam permits, be ready with your pens and calculators or whatever other materials you will need, be ready with money and/or food you will have to bring, and be sure to know where you will be taking your test and how you will get there (n.b., indeed it is better if you visit the place several days in advance).

· You may hear about tips or leaks about the exam. Ignore them. They will only cause anxiety and confusion. If you have responsibly done your best during the several months of review, then that is already more than enough and you’ll be fine.

Rule No. 8 – On the day of the exam itself, again, just relax, and focus.

When the day of the exam finally arrives, just try to relax.

· If you get a bit nervous, that’s okay, it’s normal.

- Miguel, You can talk to you Papa or Mama or Grandma or me in case any concern bothers you. And on the days of your board exam, you can count on us to pray for you, even offer Holy Mass at church and light candles at home for you. And if you want, your Papa or I can even accompany you to the place where you will take your exam, and we will standby there the whole day, so that we are there any time you need us. Okay?

· Inside the classroom where you will actually finally take the exam, don’t be surprised if you see some bizarre behavior on the part of your fellow examinees. Some of them may talk too much, some will be too optimistic, some will be pessimistic, and some will do something simply unusual (like doing yoga in the middle of the classroom in order to reduce their anxiety). Just accept and respect them for who they are, be friendly and civil, but remain personally detached (let’s face it, you hardly know these people and you may never meet them again after the board exam), and most importantly just focus on doing your best with your exam.

· If you finish ahead of time, stay and review your work. There is no point in being the first to stand up and hand in your paper for all to see, just to show how much faster and smarter you are. That’s just silly, and in fact is not a smart move at all. Stay in your seat and review your work. More often than not, you will find a mistake among your answers and you will therefore have the chance to correct it.

Rule No. 9 – Do not worry about the results of the exam.

I pray that you pass your board exam, and I believe that you will. With the kind of abilities, self-discipline, academic training, and upbringing that you have had, I am confident that you will pass any major exam that you take.

· However, if for some reasons, you do not pass a particular major exam, then no problem, just rest a while and then take it again. (Or if you never want to take it again because you would rather do something else, then that is fine too). Don’t let it discourage you, don’t let it cause you to believe less in yourself and make you doubt your potential. It’s just an exam, and one single exam cannot define you.

· Notice that I entitled this article “How to Prepare for a Major Exam” and not “How to Pass a Major Exam.” Sometimes things happen that are beyond your control, for instance you may unexpectedly get sick on the day of the exam, therefore despite months of diligent preparation you may end up performing not as well as you hoped to (i.e., still passing the exam but not attaining that high grade you aimed for), or perhaps end up actually failing the exam. If that happens it would be natural to feel sad, but you shouldn’t let that leave a permanent scar on your self esteem. You as a person are still far more important than any exam.

- Most of all, your Mama, Papa, Sister, Brother, Grandma, and I will always love you very much no matter how you perform in any exam, whether it pertains to this forthcoming board exam, or to any other exam or challenge that you may have to hurdle in the course of your life.

Rule No. 10 – Pray

Most of all, pray. Always pray.

· Pray often, to seek and receive help from God. Meditate, to remain calm and focused.

- I suggest praying the Holy Rosary. Miguel, Do you remember the Rosary I gave you last November 2010 as one of my pasalubongs (presents) for you after Mommy and I returned from the Holy Land? Why don’t you start using it now? Up to this day, whenever I pray the Rosary, I use the Rosary that Mommy gave me more than twenty years ago (after I finished college). You might want to start doing the same with the Rosary I gave you.”

· The saying goes, “Do your best, and let God do the rest.” This saying holds true. And it will always hold true, not only with regard to your board exam, but also with regard to everything else in your life.

For I know well the plans I have in mind for you, says the Lord,

plans for your welfare, not for woe!

plans to give you a future full of hope.

When you call me, when you go to pray to me, I will listen to you.

Yes, when you seek me with all your heart,

you will find me with you, says the Lord.

Jeremiah 29 : 11-14

Take delight in the Lord,

and He will grant you your heart’s requests.

Psalm 37: 4

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REFERENCES:

· RECOMMENDED VIDEOS

Miguel, Please view these videos if you can spare the time.

- Identity and Stereotype Threat, Lecture at Columbia University by Dr. Claude M. Steele, http://www.youtube.com/watch?v=q1fzIuuXlkk

This video is relevant to my advice on not letting the abilities and backgrounds of other people affect or intimidate you (see Rule No. 2).

- Anxious Students Gain on Tests by Writing About Fears, ( Based on Dr. Sian Beilock’s research on “Choking,” http://www.youtube.com/watch?v=hjyC2m7k4MI

This video teaches you the anxiety-reducing technique of writing about your worries, so that you don’t choke or under-perform on the day of your board exam (see Rule No. 8).

· BOOKS

Miguel, You don’t have to read these books (someday perhaps, but not now). I have already read them myself, and everything I wrote in “How to Prepare for a Major Exam” is based on what I learned from them, apart from what I have learned from my own experience.

- Study Smart (The Princeton Review) by Theodore Silver, M.D., J.D.

- The Psychology of Learning Mathematics by Richard R. Skemp, PhD

- Overachievement: The New Model for Exceptional Performance by John Eliot, Ph.D.

- Choke: What the Secrets of the Brain Reveal About Getting It Right When You Have To by Sian Beilock, Ph.D.

- Overcoming Procrastination: Or How To Think And Act Rationally In Spite of Life’s Inevitable Hassles by Albert Ellis, Ph.D., and William J. Knaus, Ed.D.

- Feeling Good: The New Mood Therapy by David D. Burns, M.D.

- Stress/Unstress: How You Can Control Stress At Home And On The Job by Keith W. Sehnert, M.D.

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