Edwin T
20 Aug 2011

 

Re: Ignorance of tax law

Pepingbonuan, look at what you are saying. The issue of the schools being taxed is far different than Justice Thomas paying back taxes. Justice Thomas is paying taxes on what the IRS says he owes. The schools are asking for the RETURN of money that they have paid. The question is, are the schools entitled to the return of money that they had been paying? Please note that in this case the theory of ex post facto may apply. If these schools are being run as nonprofit entities then, may be, they should not have been paying taxes, BUT if the schools are profit making businesses then they should pay taxes as any other business
does.

The following is from the REPUBLIC ACT NO. 9337: “(B) Proprietary Educational Institutions and Hospitals.–Proprietary educational institutions and hospitals which are nonprofit shall pay a tax of ten percent (10%) on their taxable income except those covered by Subsection (D) hereof: Provided, That if the gross income from unrelated trade, business or other activity exceeds fifty percent (50%) of the total gross income derived by such educational institutions or hospitals from all sources, the tax prescribed in Subsection (A) hereof shall be imposed on the entire taxable income.

Again, May be they should not be paying taxes. If the school administrators do not have enough brains to hire competent lawyers to ferrat out the ins and outs of non-profit laws then they should be terminated and the schools involved should have their accreditation revoked. They should not be teaching if they themselves are untaught.

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