BIR Ruling No. 336-2016

BUREAU OFINTERNAL REVENUE REPUBLIOFTHEPHILIPPINES DEPARTMENT OF FINANCE Quezon City

Bureau of Internal Revenue Ruling

336-2016 Person to ContactChief. Law Division Tel Nos.926-55-36/927-09-63

Date: June 29, 2016

5/F Pharmacy Building.Dr. Pablo O. Torre Memorial Hospital BS Aquino Drive Bacolod City Dr.Pablo O.Torre FoundationInc

Gentlemen:t AttentionDr.Hector L.Torre President and Chairman

National Internal Revenue Code of 1997. as amended (NIRC). Pablo O.Torre FoundationInc. as an exempt organization under Section 30F of the This refers to your letter dated October 7.2013 requesting for confirmation of Dr

association organized purely for charitable.benevolent. educational.cultural. social.civ ic services and similar purposes. It is represented that Dr.Pablo O.Torre Foundation.Inc.is a nonstock nonprofir

conducted for profit regardless of the disposition made of such income.shall be subject to exclusively for religious.charitable. scientific.athletic. or culural purposes.or tor the rehabilitation of veterans. However. the income of whatever kind and character of these organizations from any of their properties real or personal. or from any of their activities tax. Section 30(E exempts from income tax organizations organized and operated

organivation is created for one or more exempt purposes. articles expressty empower it to carry on activities which are not in furtherance of one or more exenmpt purposes.even though such organivation is.by the terms of such articles created for a purpose that is no broader than the purposes specified in Section 30 not meet the organizational test regardiess of the fact that its articles may state that such Thus.an organization that is empowered by its articles to engage in social actiiies do An organization is not organized exclusively for one or more exempt purposes if it

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and necessary attributes of sovereignty.Thus.the State cannot be deprived of this most essential power and attribute of sovereignty by vague implications of law.Rather.being Along with police power and eminent domain. taxation is one of the three basic

construed in strictissimi juris against the taxpayer and liberally in favor of the taxing the lifeblood of the government that should be collected without unnecessary hindranee. derogatory of sovereignty. the governing principle is that tax exemptions are to be clearest grant of statute. In case of doubt. non-exemption must be favored.Taxes being authority: and he who claims an exemption must be able to justify his claim by the

every precaution must be taken not to unduly suppress it. (BIR Ruling No.310-2011 dated August 22. 2011)

A perusal of the documents submitted by Dr.Pablo O.Torre Foundation.Inc shows that it is not organized and operated exclusively for charitable purposes. Its articles of incorporation show that it is also organized for social purposes. Moreover, the bulk of its revenues are generated through sponsorship of golf tournaments which it conducts with regularity. Such activity is not substantially related to the organizations charitable

therefrom exceed the costs and the same is conducted with regularity. The law is clear purpose.In addition, the same activity is conducted for profit as the revenues generated

that the income of whatever kind of organizations from any of their activities conducted

for profit regardless of the disposition made of such income shall be subiect to tax

IN VIEW OF THE FOREGOING.this Office is of the opinion that Dr.Pablo O

Torre Foundation.Inc.does not qualify for exemption under Section 30(Eof the NIR

It is therefore liable for income taxes imposed under Title Il of the NIRC

Very truly yours.

dr. pablo torre foundation K-1 VCC Commissioner of Internal Revenue KIMS.JACINTO-HENARES 042354 JUN 2 Z 2016