Bethany Baptist Church and Pastor Jose Luis Reunilla Not Exempt from Payment of Taxes on the Purchase of a Daewoo Vehicle

October 25, 1996 BIR RULING NO. 110-96 100 149 000-00 110-96 Medel Macam Del Rosario Collado & Polines 6th Floor, Bayside Royal Match Bldg. 6780 Ayala Avenue, Makati City Attention: Atty . Augusto M . Macam Gentlemen : This refers to your letter dated March 6, 1996 requesting for a ruling to the effect that your church, Bethany Baptist Church and your Pastor, Pastor Jose Luis Reunilla, Dian St., corner Emilia Street, Makati City, is exempt from the payment of the taxes on the purchase of a Daewoo vehicle from Daewoo Quezon Avenue, Inc. with the following description: (a) Daewoo Espero GLX (b) model 1996, 16 Valve 4 Dr. Sdn. 5 speed manual (c ) Engine No. A15HF236868 (d) Chassis No. KLAJF19VITB424369, (e) Color-R, Red. cdll It is represented that your church is a registered non-stock, non-profit religious corporation; that the vehicle shall be actually, directly and exclusively used by the church; and that the basis of your request for exemption is Section 28 (3) of the 1987 Philippine Constitution which provides as follows: "(3) Charitable institutions, churches and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings and improvements, actually directly and exclusively used for religious, charitable or educational purposes shall be exempt from taxation." In reply thereto, please be informed that your request cannot be granted for lack of legal basis. What is being exempt from taxation under Section 28 (3) of the 1987 Philippine Constitution are charitable institutions, churches and parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings and improvements, actually, directly, and exclusively used for religious, charitable or educational purposes. The exemption does not include the purchase of a vehicle. It is a cardinal rule in taxation that exemptions should be construed strictissimi juris because it is highly disfavored in law; and he who claims an exemption must be able to justify his claim by the clearest grant of organic or statute law. An exemption from the common burden cannot be permitted to exist upon vague implications (Asiatic Petroleum Co. vs. Llanes, 49 Phil. 466). In view thereof, your churchs purchase of a Daewoo Espero GLX, Model 1996, 16 Valve 4 Door Sedan is subject to the payment of VAT and ad valorem tax under Sections 100 and 149 both or the Tax Code, as amended. LLphil Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue