1. ART College of Business and Arts is recognized by the government offers primary, high school and college courses.

- The first floor of the school building was being leased to a marketing corporation.

- The school president with his family resides in the second floor of the main building.

- The entirely of the third floor is used for classrooms.

_ a portion of the fourth floor was being used as faculty room, library facilities for student nurses, radio room for mass communications students and computer room for students of computer courses.

Which portion of the school building is subject to real property tax?

a.

First floor only

c.

First, second and fourth floors

b.

First and second floors

d.

The entire building

1. Statement 1: A building being leased by a private individual to a religious or a government educational institution is exempt from real property tax.

Statement 2: A non-stock non-profit educational institution is subject to income tax on its income.

a.

True, True

c.

False, False

b.

True, False

d.

False, True

1. Which of the following statements is not correct?

a.

An inherent limitation of taxation may be disregarded by the application of a constitutional limitation.

b.

The property of an educational institution operated by a religious order is exempt from property tax, but its income is subject to income tax.

c.

The prohibition of delegation by the state of the power of taxation will still allow the Bureau of Internal Revenue to modify the rules on time for filing of returns and payment of taxes.

d.

The power of taxation is shared by the legislative and executive departments of government.

1. Saint Anthony College (SAC) is a non-stock, non-profit educational Institution. It owns a 5 hectare 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, 2020: (1) rent out to a marketing firm the vacant portion of the lot; (2) increase tuition fee by 10% in accordance with government regulations; and (3) import 20 sets of computers for use in its computer courses. Which of the following questions is answerable by "Yes"?

a.

Is SAC subject to real estate tax on the one-half portion to be rented out to a business establishment?

b.

Will it be exempt from income tax on its rental to the marketing firm?

c.

Will the increase in tuition fees be subject to income tax if it results to a net income from school operations?

d.

Will it be subject to customs duties on the importation of the computers?