Practice question
A charitable hospital has an identified ward actually, directly and exclusively used for treating patients as part of its charitable operations. Some patients pay fees. Is payment by some patients alone enough to defeat exemption under Lung Center?
- Yes, because every paid patient converts all wards into commercial leases.
- Yes, because charity requires every service to be free.
- Yes, because medical treatment can never be charitable.
- No, because all hospital property is automatically exempt regardless of use.
- No. Lung Center recognized exemption for qualifying patient-treatment portions, whether patients pay or not.
Legal references
- RA 7160, Section 234; https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
- Lung Center of the Philippines v. Quezon City, G.R. 144104, June 29, 2004, main decision; https://lawphil.net/judjuris/juri2004/jun2004/gr_144104_2004.html
Answer this question in flashcards to review your response and continue practicing.