Practice question
A non-stock, non-profit university proves its rental revenues were actually, directly and exclusively used for education. The collector says the commercial source alone necessarily defeats the constitutional revenue exemption. Under DLSU MAIN, which is correct?
- The relevant revenue-use conditions can support the constitutional exemption despite the rental source
- Only tuition can ever be constitutionally exempt revenue
- A commercial source always defeats the revenue exemption regardless of use
- The university need not prove use of any revenue
- Every charitable corporation automatically receives the identical constitutional privilege
Legal references
- 1987 Constitution: https://lawphil.net/consti/cons1987.html ArticleXIV Section4(3).
- CIR v. De La Salle University, GR196596/198841/198941, November9 2016 MAIN: https://lawphil.net/judjuris/juri2016/nov2016/gr_196596_2016.html MAIN revenue-versus-asset discussion.
Answer this question in flashcards to review your response and continue practicing.