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Download - Catholic Educational Association of the Philippines

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HOWEVER, if <strong>the</strong> school canteen is operated<br />

by a concessionaire who pays rent or a<br />

percentage <strong>of</strong> <strong>the</strong> gross pr<strong>of</strong>it for <strong>the</strong><br />

use <strong>of</strong> <strong>the</strong> premises to <strong>the</strong> School or for<br />

<strong>the</strong> privilege <strong>of</strong> operating <strong>the</strong> canteen within<br />

school premises, <strong>the</strong>n this is NOT<br />

considered by <strong>the</strong> BIR as tax-exempt.<br />

The Bureau <strong>of</strong> Internal Revenue/Dept <strong>of</strong><br />

Finance argue that <strong>the</strong> activity (rental <strong>of</strong> <strong>the</strong><br />

school canteen) is NOT related to <strong>the</strong><br />

educational purpose <strong>of</strong> <strong>the</strong> School.<br />

CEAP SMX NATIONAL<br />

ASSEMBLY 083012<br />

200

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