Imposable Tax on Arañeta University Faculty and Employees Foundation, Inc.

February 10, 1958 BIR RULING NO. 077-58 The President Araeta University Victoneat park, Rizal Avenue Extension, Malabon S i r : Reference is made to your letter of January 24, 1958, requesting information as to whether the proposed Araeta University Faculty and Employees Foundation, Inc., in view of the following purposes thereof and other related information, as shown in the attached copies of the proposed articles of incorporation and by-laws, is tax exempt or not: prll "ARTICLES OF INCORPORATION, etc. xxx xxx xxx "2. The purposes of this corporations are as follows: "To administer as trust funds such amounts which the Araneta University, may set aside annually for the benefit of its faculty members and employees in the form of loans for the construction of houses for those without homes and/or to start their own personal business projects so as to improve their financial conditions, or to provide college educational to their children. "BY-LAW, etc. . . xxx xxx xxx ARTICLE VII FEES AND DUES "1. There shall be no regular fees and dues, but any member may contribute any amount voluntarily to the operating funds of the association. "2. Contributions of persons who sympathize and believe in the purposes of the association shall be welcome and shall be receipted by the Treasurer. In reply thereto, I have the honor to inform you that, after a thorough consideration of its purposes and the activities that would certainly implement said purposes, the proposed Araneta University Faculty and Employees Foundation, Inc., is not among those expressly exempted under Section 27(e), etc. of the Tax Code. Accordingly, the proposed foundation will be subject to income, residence and business taxes. cdta Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue