Not free from taxes
Edwin T
24 Dec 2011
Once again the Lyceum-Northwestern University is suing or threatening to sue Dagupan over the city’s imposition of business taxes on LNU and other schools. It would be more advisable for the university to petition congress to change the Philippine Constitution.
The LNU administrators should instruct the attorneys representing the university to read the Bureau of Internal Revenue (BIR) regulations, in particular Revenue Memorandum Circular 76-2003 and also Tax Exemptions of Non-Stock, Non-Profit Corporations Section 30, Tax Code of 1997 and Non-stock, Non-Profit Educational Institutions under Paragraph 3, Section 4, Article XIV of the Constitution.
Just being called a “non-profit” or “not for profit organization” does not free the university from the encumbrance of paying taxes. The university is obliged to pay taxes on any money gained that is not directly used in the quest of educating and buildings used for that purpose. One of the purposes of a university is to teach its students their civic duties not how to evade taxes so that the administrator can line their pockets with ill-gotten gains.
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