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CIR v. SPCM
CIR v. SPCM
TAN
RELEVANT FACTS
On July 22, 2013, Petitioner CIR, through Hon. Kim S. Jacinto-Henares, as
Commissioner, issued RMO No. 20-2013, entitled: “Prescribing the Policies
and Guidelines in the Issuance of Tax Exemption Rulings to Qualified Non-
Stock, Non-Profit Corporations and Associations under Section 30 of the
NIRC of 1997, as Amended”
On November 29, 2013, Respondent St. Paul College of Makati, a non-stock,
non-profit educational institution filed a Civil Action to Declare
Unconstitutional RMO No. 20-2013 with Prayer for Issuance of Temporary
Restraining Order and Writ of Preliminary Injunction. They alleged that the
said RMO poses a requisite to the enjoyment of the privilege of tax-
exemption under Sec. 4(3) of Article XIV of the Constitution – the submission
of an application for tax exemption to the BIR, subject to approval by the CIR
in the form of a Tax Exemption Ruling (TIR), valid for a period of three years
and subject to renewal.
According to SPCM, the said RMO makes the failure to file an annual
information return a ground for a non-stock, non-profit educational
institution like theirs to automatically lose its income tax-exempt status.
RTC Ruling: Issued a TRO against the implementation of RMO No. 20-2013
and granted the writ of preliminary injunction. Declared the RMO No. 20-
2013 unconstitutional. The requisites served as a diminution of the
constitutional privilege which even Congress cannot diminish by legislation.
On September 18, 2014, the CIR issued RMO No. 34-2014 which clarified
certain provisions of RMO No. 20-2013, as amended by RMO No. 28-2013
RTC MR Ruling: Denied
Issue Ratio
RULING