BIR Ruling

September 21, 1971 Saint Andrew Academy, Inc. Sangay, Camarines Sur Attention: V.R. Mother Teresita Hacbang, O.R. Chairman, Board of Trustees Gentlemen : This refers to your letter dated May 11, 1971 requesting exemption of the Saint Andrew Academy, Inc., Sangay, Camarines Sur, from the payment of income tax and filing of the corresponding income tax return under Section 27(e) of the Tax Code. cdi Investigation disclosed that the Saint Andrew Academy (hereinafter referred to as the corporation) is a non-stock and non-profit religious-educational corporation duly registered with the Securities and Exchange Commission; that the purpose for which the corporation was established is to give a sound, complete and Catholic education, from I to III Secondary Course to children and youth of the Philippines and to promote their intellectual and moral development; that the principal office of the corporation shall be located in the municipality of Sangay, Province of Camarines Sur; that the corporation shall be administered by a Board of Trustees composed of five (5) members who are also members of the Roman Catholic Church; that the said trustees, who are at the same time the incorporators, shall serve for a term of one (1) year from and after the date of their election and until their successors are elected and duly qualified in accordance with the By-Laws; that the corporation shall be maintained by means of tuition, entrance, matriculation and other fees that it may collect from students enrolling therein; that the corporation derives no income from its properties or from any activity conducted for profit; that any income derived from any source whatsoever, is merely incidental to its activities as a non-stock, non-profit, religious-educational and other related activities; and that no part of its income, if any, inures or accrues to the benefit of any private individual or shareholder. In view of all the foregoing, this Office believes and so holds that the Saint Andrew Academy, Inc. falls within the purview of corporation or association organized and operated exclusively for religious and educational purposes as contemplated under 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 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 returns. Moreover, it is required to file on or 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 change in its By-Laws, Articles of Incorporation, manner of operation and activities as well as sources and disposition of income. cdta Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue