BIR Ruling

February 20, 1973 Sister Mary Bontogon, FAS Chairman, Board of Trustees St. Anthony's Academy Sta. Ana, Cagayan M a d a m : This refers to your letter dated December 15, 1972 requesting exemption of the St. Anthony's Academy, Inc., Sta. Ana, Cagayan from the payment of income tax and the filing of the corresponding income tax return under Section 27(e) of the Tax Code. The records of this case disclosed that the St. Anthony's Academy, Inc. (hereinafter referred to as the School) was established and organized as a non-stock, non-profit, corporation for the purpose of giving a sound, complete and general education to children and youth in the Philippines and to promote their intellectual and moral development; that the School shall be maintained by means of tuition, entrance, matriculation and other fees that it may collect from students enrolling therein; and that no part of its net income inures to the benefit of any individuals. In view of the foregoing, this Office is of the opinion and so holds that the school is exempt from the payment of income tax under Section 27(e) of the Tax Code. The School is, however, subject to income tax on income derived from any of its properties, real or personal, or from any activity conducted for profit, regardless of the disposition made of such income. If it has not earned any taxable income, it is also exempt from the filing of income tax return. However, the School is required to file on before April 15 of each year, a profit and loss statement and balance sheet with the annual information return under oath, stating its gross income and expenses incurred during the preceding year and a certificate showing that there has not been any substantial change in its By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income pursuant to Revenue Regulations No. 7-64 dated November 4, 1964. This exemption extends to that of St. Anthony's Academy of Gonzaga Cagayan, it being a branch of and is established and operated for the same purpose as the School. This Office may however, revise or modify this ruling if upon investigation, it will appear that the facts are different from those upon which the ruling is predicated. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue