BIR Ruling No. 428-61

November 21, 1961 BIR RULING NO. 428-61 The President St. Vincent Parish Council, Inc. Rooms 26-29, New Lopez Bldg. Session Road, Baguio City S i r : Reference is made to your letter dated July 30, 1961, which was forwarded to this Office by the Acting Regional Director, Regional District No. 1, that city, requesting reconsideration of the latter's denial of your request in behalf of that corporation. It appears from its Articles of Incorporation that the St. Vincent Parish Council, Inc., hereafter referred to as the Council, is duly registered as a religious and charitable institution. It appears further that the proceeds of the benefit shows which it will hold will defray the cost of a gymnasium and work shop for use by the public free of charge. Under the circumstances, this Office believes that the Council is entitled to the 50% exemption provided for in Section 261 of the Tax Code. In this connection, the Court of Tax Appeals in the case of Church of Jesus Christ "New Jerusalem" vs. Commissioner of Internal Revenue (C.T.A. Case No. 592, June 30, 1959) said: ". . . A religious corporation is not limited to purely religious activities. It is by its very nature and purpose also a charitable organization. Acts of charity . . . are of common knowledge best handled and performed by religious organizations". Please be advised, however, that the 50% exemption is predicated on the fact that the admission fees to the benefit shows will be collected by the Council itself or by someone for and in its behalf, and necessarily the entire proceeds must inure to it. The exemption will not apply where the theater owner merely accommodates an eligible institution under the guise of the latter's sponsorship and surrenders to the institution only the amount corresponding to the 50% exemption. A copy of this letter has, on even date, been furnished said official for his information. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue The above ruling was duly signed by the Commissioner of Internal Revenue on Nov. 21, 1961. (SGD.) P. F. LANDAS Revenue Operations Head (Legal)