My Blog List

Saturday, March 26, 2011

Proprietary educational institutions should pay taxes

The “imbroglio” between the acrimonious owners of colleges and universities and Dagupan City Mayor Benjie S. Lim should be juxtaposed with an observation by a BIR lawyer assigned at the Region 1 Office.
I asked him whether these livid owners are not obligated to pay taxes as they want to impress to the public.
This top tax executive said that proprietary (profit-seeking) educational institutions are not exempted.
He declared that each of them should pay a tax of ten percent (10%) of their taxable income.
He added that if the gross income from their unrelated trade, business, or other activity exceeds fifty percent (50%) of the total gross income derived by such education institutions or hospitals from all sources, the tax prescribed in Subsection (A) (Income of Domestic Corporation which is 30% annually) shall be imposed on the entire taxable income. He explained that “unrelated trade, business, or other activity” means any trade, business, or other activity, the conduct of which is not substantially related to the exercise or performance by such educational institution or hospital of its primary purposes or function.
He quoted this opinion from Sub-Paragraph B, Section 27 of the National Internal Revenue Code of the Philippines. 
What this top tax honcho explained to me are taxes that are being required in the national level for these rambunctious owners of educational institutions in Dagupan. Likewise, this lowly writer (who like to associate with either fake or wannabe media men) opined that this requirement is analogous also with the requirements being levied to them by the City government.
These are the Real Property Tax, and the Business Tax that they do not want to pay.
But how come some of these complainant owners paid their local tax dues last year when they were bellyaching to all and sundry that they are not required by law to pay?
My Marlboro-ciggie-chomping friend Senator Chiz Escudero decried the torture done by military men after he saw it at YouTube:
“How can we call for an end to the culture of impunity among our government agents dealing with people in government custody when they also do it to their very own men?”Escudero, chairs of both Committee on Justice and Human Rights and the National Defense and Securities, reacted.
Apologists of the military even defended it as communist propaganda and went to the extent of a mere “play actions.”
Ginawa pang “Showbiz”.
I watched some military documentary films at Discovery Channel recently on how the elite U.S Special Forces and Marine Recon were trained.
In that grueling 60 days training for Special Forces attended by officers and enlisted men, out of the more than 300 recruits, only 87 survived that hell. Survival means the right to don that “sacred” Special Forces badge that was pinned to their uniform by a highest ranked officer there without fanfare.

A trainee jumped from a platform as tall as our averaged coconut tree to chilling water with their M-16 rifle, bulky knapsack, and their combat boots on. In that water, they have to get rid with their contraptions in a timed process and swim to the river bank to accomplish it. Failure to beat the time means back to square one again at the platform. To test their physical limits, they were forced to walk in the jungle hostile with elements as if it was a military operation for tree days without sleep.
In a similar training with the Marine Recon, I saw no torture like the one meted by Philippine troops that scandalized many people.
Officials of our military should watch these reality shows incessantly played by Discovery Channel. Even without “torture, American forces are considered as the most elite in the armed forces in the world.
((You can read my previous columns at or  contact me at

No comments:

Post a Comment