16. Yes. The appeal is meritorious.

It is a well settled rule that Secretary of justice has no jurisdiction to review the assessment of
the BIR.

Here, it is the CTA has the jurisdiction over this case, pursuant to RA No. 1125 which grants the
CTA the exclusive appellate jurisdiction to review, among others, the decisions of CIR.

Thus, the appeal is meritorious.

17.

a. No. The City Treasurer of Caloocan City cannot collect real property taxes on the land and
building of San Juan University.

The Constitution provides that all revenues and assets of non-stock, non-profit educational
institutions which are actually, directly exempt from taxation. It shall be exclusively used for educational
purposes.

Here, San Juan University is a non-stock, non-profit educational institution. Its land and building
are exclusively used for educational purposes. Thus, the City Treasurer of Caloocan City cannot collect
real property taxes over the said land.

b. As to the tuition fees, it is non- taxable provided they are used actually, directly and exclusively
for educational purposes.

However, rentals from canteen concessionaires are taxable. Rental Income is considered as
unrelated to the school operations.

18.

a. OUTRIGHT SMUGGLING refers to the absence of documents involved and no import entries
involved. TECHNICAL SMUGGLING there are documents pass through BOC, but the processing and
clearing procedures are attended by fraudulent acts.

OUTRIGHT SMUGGLING takes place, not only in isolated beaches in our archipelago or through
the southern back door, but in our ports of entry. TECHNICAL SMUGGLING takes place through
undervaluation, under-declaration of volume shipped, misclassification and diversion of cargo.

b. COMPROMISE involves the payment of a certain percentage of the tax liability while
ABATEMENT means cancellation so there will be no payment of the tax liability.
19.

a. YES. CMI School is liable for the payment of donor’s tax.

Under sec. 101 of the Tax Code, donations of educational, charitable. Religious, cultural or social
welfare corporation, institution are deductible, provided that not more than 30% of said gifts shall be
used by such donee for administration purposes.

In this case, the donation of CMI school to SLC University is for recognition of the latter’s
contribution to the former. Thus, CMI School is liable for the payment of donor’s tax.

b. YES. SLC University is liable for capital gains tax.

It is a time-honored rule that sale on real properties is subject to the 6% capital gains tax,
regardless of whether the seller is an individual or a juridical entity.

Here, SLC University,a juridical entity, sold the parcels of land to Puregold Supermarket, Inc. The
former is liable for the capital gains tax as it is classified as capital asset. It is important to note that taxes
should not be unduly exacted nor assumed beyond the plain meaning of the tax law.

Thus, SLC University is liable for capital gains tax.

c. NO. SLC University is not liable for donor’s tax.

Under Sec. 101 of the Tax Code, gifts made to or for the use of the National Government or any
entities created by any of its agencies which is not conducted for profit or to any political subdivision of
the said Government are exempted for donor’s tax.

Here, SLC University made a donation in favor to a government entity which is that Municipality
of Cuyapo, Nueva Ecija. The latter is not a political subdivision nor conducted for profit. Thus, SLC
University is not liable for donor’s tax.