Saint Anthony College (SAC) is non-stock, non-profit educational institution. It owns a 5 hectares lot one half of which is being used as its school campus while the other half is vacant. To cope with the increasing operating costs and to upgrade its facilities, SAC plans to do the following effective January 1, 2017: (1) Rent out to a marketing firm the vacant portion of the lot. (2) Increase tuition fees by 10% in accordance with government regulations: and (3) Import 20 sets of computers for use in its computer courses. Which of the following is answerable by "yes"
Select one:
a. Is SAC subject to real estate tax one-half portion to be rented out to the business establishment?
b. Will it subject to customs duties on the importation of the computers?
c. Will the increase in tuition fees be subject to income tax, if it results to a net income from school operation?
d. Will it be exempt from income tax on its rental to the marketing firm?
Answers
AMA Computer University
BSBAMM
BSBAMM 2019007961
Saint Anthony College SAC is non stock non profit educational institution It
Saint anthony college sac is non stock non profit
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Saint Anthony College (SAC) is non-stock, non-profit educational institution. It owns a 5 hectares lotone half of which is being used as its school campus while the other half is vacant. To cope with theincreasing operating costs and to upgrade its facilities, SAC plans to do the following effective January1, 2017:(1) Rent out to a marketing firm the vacant portion of the lot.(2) Increase tuition fees by 10% in accordance with government regulations: and(3) Import 20 sets of computers for use in its computer courses.a. Will it be exempt from income tax on its rental to the marketing firm?I. The power of taxation is inherent in sovereignty being essential to the existence of everygovernment. Hence, even if not mentioned in the Constitution the state can still exercise the powerand is essentially a legislative function. II. Even in the absence of any constitutional provision, taxation power falls to Congress as part of thegeneral power of law-makingd. True, TrueThe Lung Center of The Philippines, a charitable institution, is erected in the middle of a twelvehectare lot:I. A big space at its ground floor is being leased to private parties/ for canteen and small store spaces,and medical or professional practitioner who use the name of their private clinics for their patientswhom they charge for their professional services.II. The rest of the portion of the building are used for its patients, whether paying or non-payingIII. Almost one-half of the entire area of the lot on the left side of the buildings is vacant and idleIV. A big portion on the right side is being leased for commercial purposes to a private enterpriseknown as the Elliptical Orchids & Garden Center.Which portion is subject to real property tax?d. I, III and IVI. The property taken in police power is destroyed while the property taken under the power ofeminent domain and power of taxation are not destroyed.II. In power of taxation, the compensation received is the protection afforded to the citizens: in policepower the compensation received is the altruistic feelings that somehow you contributed to the

promotion of the general welfare: in power of eminent domain, the compensation received is thejust compensation paid for the property taken.