BIR Ruling

March 9, 1970 Hon. Jaime N. Ferrer Chairman Commission on Elections Manila S i r : This refers to your letter dated January 29, 1970 requesting exemption from taxes of all contributions given to the Operations: Peaceful, Honest Elections (OPHE) which is being endorsed by that Commission. It is represented that the Operations: Peaceful, Honest Elections is a movement dedicated to the task of educating our voters; that the movement has come up with a Voter-Education Kit for group Action, complete with guidelines, reference materials, and visual aids, which are being distributed to the youth and adult groups all over the country; and that it has also produced similar literature on our coming Constitutional Convention and social change. acd In reply thereto, I have the honor to inform you that gifts and/or donations made in favor of a non-profit educational and/or charitable corporation, institution, foundation, trust or philanthropic organization or research institution or organization and those made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said government shall be exempt from the payment of the donor's and donee's gift taxes in accordance with Sections 109, 110, and 112 of the Tax Code, as amended by Republic Act No. 6110. The Operations: Peaceful Honest Elections do not fall under the category of any of the abovementioned institutions and/or organization. It is a well-settled principle in statutory construction that if a statute enumerates the things upon which it is to operate, everything also must necessarily and by implication be excluded from its operation and effect. (Page v. Bartlett, 101 Ala. 193, 13 SO T 68) Moreover, there is no law exempting from taxes all contributions given to the movement such as the present one being endorsed by that Commission. It is a rule that exemption from taxation are highly disfavored in law, and the party claiming tax exemption must justify his claim by a positive or express grant of such privilege by law. (Collector v. Manila Jockey Club, G.R. No. L-8755, March 23, 1956; the Roman Catholic Apostolic Church of the Philippines v. Hastings et. al., 5 Phil. 701, 703; City of St. Louis v. Rey Co., 210 U.S. 266, 28 Sup. Ct. 630, 52 L. Ed. 1054; Gov't of P.I. vs. Monte de Piedad, 51 Phi. 352) In view thereof, this Office believes, and so holds, that all contributions made in favor of the Operations: Peaceful Honest Elections are subject to the payment of the donor's and donee's gift taxes. cdt Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue