Practice question
A genuine charitable hospital treats both paying and nonpaying patients. The disputed rooms are actually, directly and exclusively devoted to hospital treatment and are not commercially leased. An assessor argues solely that accepting any paying patients necessarily destroys the institution’s charitable character. Under Lung Center, what is the best answer?
- Every receipt from a patient conclusively destroys charity.
- Only totally free institutions can ever qualify.
- The hospital becomes a bank whenever it charges a fee.
- Charging some patients does not by itself defeat charitable character; the relevant facts and actual property use must be examined.
- Property use is always irrelevant.
Legal references
- 1987 Constitution, Article VI: https://lawphil.net/consti/cons1987.html
- Lung Center of the Philippines v. Quezon City, G.R. No. 144104, June 29, 2004, main decision: https://lawphil.net/judjuris/juri2004/jun2004/gr_144104_2004.html
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