Religious Organization created under Sec. 27(e) of the Tax Code

July 15, 1977 Religious Organization created under Sec . 27(e) of the Tax Code This refers to your request for exemption from the payment of income tax and the filing of the corresponding income tax return under Section 27(e) of the Tax Code. It appears that the Catholic Action of the Philippines is a non-stock corporation duly registered with the Securities and Exchange Commission; that the purposes for which the corporation; formed are: 1) To establish a select and compact organization of lay Catholics who inspired and moved by a militant profession of the faith place themselves at the service of the Roman Catholic Church in its worked and missions of worship, of charity and for instructions: in the defense and preservation of the faith; in the establishment and maintenance of schools and in all other movements and endeavors of similar object and character; 2) To prepare, train and unite its members to achieve the purposes hereof and to direct, unify and coordinate activities of dispersed energies of lay Catholics so that they may act effectively in the defense of the Roman Catholic Church; 3) To cooperate with the bishops and parish priests on all levels of religious life; .4) To help support and collaborate with the Catholic Hierarchy, specially the Bishops and Priests, in the teaching and dissemination of Christian culture, in the Christianization of the family and in the defense of the rights and liberties of the Catholic Church: 5) To protect, promote and defend the Catholic press and help teach and strengthen Christian morality, devise and implement Christian solution of social problems and promote a Christian civic spirit: and 6) To administer and manage the moneys and properties of the corporation in such manner as may from time to time be considered wise or expedient for the advancement of its interest: that the corporation shall be maintained by means of funds derived from membership fees, monthly dues and other voluntary contributions from members to be determined by its by-laws; and that no part of its net income inures or may inure to the benefit of any member or individual. In view thereof, this Office is of the opinion and so holds that the Catholic Action of the Philippines falls within the purview of an organization organized and operated exclusively for religious purposes as contemplated by Section 27(e) of the Tax Code. Accordingly, it is exempt from the payment of income tax. It is however, subject to income tax on income derived from any of its properties, real or personal, or any activity conducted for profit, regardless of the disposition made of such income. Such being the case, it is required to file income tax returns declaring therein its interest income derived from bank deposits, and money market which are subject to income tax. Moreover, it is required to file on or before April 15 of each year a profit and loss statement and balance sheet with an annual information return under oath, stating its gross income and expenses incurred during the year and a certificate showing that there has not been any change in its By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income. cdti