DOJ Opinion No. 147, s. 1982

DOJ OPINION NO. 147 , s. 1982 3rd Indorsement July 8, 1982 Respectfully returned to the Acting Commissioner, Land Registration Commission, Quezon City, his within request for opinion as to "whether or not the Angeles University Foundation is exempt from the payment of registration fees and documentary stamp tax in connection with the registration of a mortgage document" with the Register of Deeds of Angeles City. Subject to extended discussion hereinbelow set forth, we answer the query in the affirmative. LLphil The within papers show that the Angeles University Foundation is applying for a mortgage loan the proceeds of which shall be used in the "construction of its buildings and school facilities to improve and upgrade its capabilities as an institution of learning." It is the above-said exemption under Section 8 of Republic Act No. 6055 which reads: "SEC. 8. The foundation shall be exempt from the payment of all taxes, import duties, assessments, and other charges imposed by the Government on all income derived from or property, real or personal used exclusively for the educational activities of the foundation ." (Emphasis Supplied). It bears emphasis that Sec. 8 of R.A. 6055 refers to two separate groups of exemptions to which a foundation shall be entitled, namely: 1. Taxes, impost duties, assessments and other charges . . . on all income derived from the educational activities of the foundation, and; 2. Taxes, impost duties, assessments and other charges . . . on property , real or personal used exclusively for the educational activities of the foundation. The President of the said Foundation avers that the exemption granted to a foundation under the aforequoted provision of law is "all embracing to include assessments and other charges, not only on its income but on properties, when used exclusively for the educational activities of the foundation" and, that the "documentary stamps on the mortgage contract and the registration fees to register the mortgage contract to secure the loan [the proceeds of which shall be used] to construct a building to house the ever-increasing population of the school are indisputably properties and/or educational activities within the context of the exemption . . ." We concur in the above-said view. In Opinion No. 157, s. 1981, this Ministry had occasion to act favorably on a similar request of the Angeles University Foundation for exemption from the payment of building permit fee by virtue of Section 8 of R.A. No. 6055 by ruling that: LexLib ". . . charges are sustainable as 'fees'. (Hauson vs. Griffiths, 124 N.Y.S. 2d 473, 476, 204 Miss. 735 [1953] and the word 'fees' designates the sum prescribed by law as charges for services rendered by public officers (Collman vs. Mansmaker, 149, p. 292, 293, 27 Idaho, 342 [1915]. Hence, subject fees fall within the purview of the exemption provision of R.A. 6055 . . ." In view of all the foregoing, this Ministry hereby reiterates its affirmative reply hereinabove expressed. Please be guided accordingly. Very truly yours, (SGD.) RICARDO C. PUNO Minister of Justice