BIR Ruling

August 27, 1970 Philippine Cancer Society, Inc. 310 San Rafael St., Manila Attention: Dr . Roman T . Salacup Executive Secretary Gentlemen : This refers to your request for exemption of the Philippine Cancer Society, Inc. from the payment of income tax and filing of the corresponding income tax return under Section 27(e) of the Tax Code in relation to Section 24 of Republic Act No. 3589. It appears that the Philippine Cancer Society, Inc. (hereinafter referred to as the Society) is a non-stock, non-profit scientific and educational organization duly registered with the Securities and Exchange Commission; that the purposes for which the corporation was organized are the following: to help advance knowledge about cancer by encouraging and assisting original research; to collect and record facts concerning cancer in the Philippines and to disseminate information thereof through all media of information; to combat the spread of cancer and to extend relief to those who are afflicted with cancer; to establish branches in the provinces and cities for the purpose of carrying out the objectives of the Society and to provide rules and regulations for such branches; to acquire, erect, hold, manage and administer institutions for the study, prevention and treatment of cancer; to acquire, own, hold, lease, sell or otherwise deal with such properties, real or personal, as may be necessary, convenient, or otherwise appropriate for carrying out the purposes of the society; and for the purposes above specified, to solicit voluntary contributions of money and to receive and accept donations of property, real and personal, and expressly declare that at least 51% of its gross income asset shall be devoted to undertakings, directly financing, or assisting pure, fundamental or pure research, applied research, development work and/or economic evaluation and/or granting of scholarship for scientific and technological manpower training, including the establishment of professorial chairs, in any or all of the fields of heal sciences, social and medical; that the corporation shall be financed and maintained by means of membership fees and dues, donations and charitable contributions; and that upon its dissolution, its remaining assets shall be disposed of and turned over to any foundation dedicated to scientific pursuits of its choice or to the Government or any of its agencies or instrumentalities or political subdivisions, with the exception of the lot, the use of which was a donation of the Concepcion Paterno Memorial, Inc. and which was subject to previous conditions that the lot and the permanent improvements (Building) will revert to the owner when the corporation has ceased to exist. In view of all the foregoing, this Office believes and so holds that the Philippine Cancer Society, Inc. falls within the purview of an organization or association organized and operated exclusively for scientific and educational purposes as contemplated under Section 27(e) of the Tax Code. Accordingly, it is exempt from the payment of income tax and filing of the corresponding income tax return. It is, however, required to file on or before April 15 of each year, a balance sheet, profit and loss statement together with an 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 well as sources and disposition of income. Moreover, all income of whatever kind and character which it may derive from any of its properties, real or personal, or from their investments in pursuance of its objectives shall be tax-exempt pursuant to the provisions of Section 24 of Republic Act No. 3589. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue