Car Allegedly Donated to an Organization Does Not Fall Within the Exempting Provisions of RA No. 1916

October 7, 1960 BIR RULING NO. 445-60 The Confederation of Filipino Veterans 1202 General Luna, Ermita M a n i l a Gentlemen : Reference is made to your letter of the 5th instant, requesting reconsideration of our decision (B.I.R. Ruling No. 405, current series), holding that the car allegedly donated to that organization does not fall within the exempting provisions of Republic Act No. 1916, the same not being a duly incorporated or established international civic organization, religious or charitable society or institution. In support of said request, you contended that as stated in your "Constitution and By-Laws", the organization is a charitable one. Accordingly, you submitted a certificate issued by the Assistant Provincial Health Officer, Legaspi City, attesting to the alleged charitable nature of the organization and another issued by Dr. Regalado S. Mamagun, a practising physician, to the effect that the alleged veterans named therein (whose respective addresses are not indicated) had been under his medical care "as part of a charitable program of the Confederation of Filipino Veterans". cd In answer thereto, I have the honor to quote from the articles of incorporation of the organization itself, a photostat copy of which had been submitted with your previous request: "And we hereby certify: "xxx xxx xxx. "SECOND That, said corporation is a fraternal, patriotic, historical, semi-charitable, non-sectarian and non-political organization, and the purposes for which it is formed , are : "1. This confederation shall be the exclusive representative of all its members in transactions pertaining to the affairs of veterans. "2. It shall be the sole policy-making instrumentality for all veterans. "3. It shall have the absolute power to arbitrate amongst its different members to expel any member for cause." (page 1; emphasis supplied) Nowhere can it be gathered that the organization is a charitable one. While it is true that, as claimed, the "constitution and By-Laws" thereof states that it is a charitable organization (Art. II, Sec. 1, Constitution), nevertheless, such statement cannot be made to prevail over the express provisions of its articles quoted above, considering that the requirement regarding the execution and filing of articles of incorporation in the Securities and Exchange Commission is mandatory while that on the adoption and filing of by-laws in said Office merely directory (see Secs. 6 and 20, Corporation Law commentaries thereon of Tolentino). Moreover, said "Constitution and By-laws" is to all appearances self-serving, for (1) it does not appear to have been registered with the Securities and Exchange Commission; (2) it is undated; (3) it does not appear to have been signed by at least a majority of the members of the organization. Neither can the above-mentioned certificates prevail over the aforequoted provisions of the articles, it appearing that they are not even sworn to nor issued by responsible officers of the organization. With respect to the other reasons given in support of the request, we believe that, no proof having been submitted thereon, the same deserve little or no consideration at all. In view of all the foregoing, it is regretted that your request has to be, as it is hereby, denied. casia Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue