Sunday, February 26, 2012

CIR vs CA and YMCA, [298 SCRA 83]

Facts: The main question in this case is: “is the income derived from rentals of real property owned by Young Men’s Christian Association of the Philippines (YMCA) – established as “a welfare, educational and charitable non-profit corporation” – subject to income tax under the NIRC and the Constitution? In 1980, YMCA earned an income of P676,829 from leasing out a portion of its premises to small shop owners, like restaurants and canteen operators and P44k form parking fees. 

Issue: Is the rental income of the YMCA taxable? 

Held: Yes. The exemption claimed by the YMCA is expressly disallowed by the very wording of the last paragraph of then Sec. 27 of the NIRC; court is duty-bound to abide strictly by its literal meaning and to refrain from resorting to any convoluted attempt at construction. The said provision mandates that the income of exempt organizations (such as YMCA) from any of their properties, real or personal, be subject to the tax imposed by the same Code. Private respondent is exempt from the payment of property tax, but nit income tax on rentals from its property.

Digg Google Bookmarks reddit Mixx StumbleUpon Technorati Yahoo! Buzz DesignFloat Delicious BlinkList Furl

0 comments: on "CIR vs CA and YMCA, [298 SCRA 83]"

Post a Comment