G.R. No.

L-39086 June 15, 1988 petitioner by the respondent treasurers on July 8, 1972 for
the sale at public auction of said college lot and building,
ABRA VALLEY COLLEGE, INC., represented by PEDRO which sale was held on the same date. Dr. Paterno Millare,
V. BORGONIA, petitioner, then Municipal Mayor of Bangued, Abra, offered the highest
vs. bid of P6,000.00 which was duly accepted. The certificate
HON. JUAN P. AQUINO, Judge, Court of First Instance, of sale was correspondingly issued to him.
Abra; ARMIN M. CARIAGA, Provincial Treasurer, Abra;
GASPAR V. BOSQUE, Municipal Treasurer, Bangued, On August 10, 1972, the respondent Paterno Millare (now
Abra; HEIRS OF PATERNO MILLARE, respondents. deceased) filed through counstel a motion to dismiss the
complaint.
PARAS, J.:
On August 23, 1972, the respondent Provincial Treasurer
This is a petition for review on certiorari of the decision * of and Municipal Treasurer, through then Provincial Fiscal
the defunct Court of First Instance of Abra, Branch I, dated Loreto C. Roldan, filed their answer (Annex "2" of Answer
June 14, 1974, rendered in Civil Case No. 656, entitled by the respondents Heirs of Patemo Millare; Rollo, pp. 98-
"Abra Valley Junior College, Inc., represented by Pedro V. 100) to the complaint. This was followed by an amended
Borgonia, plaintiff vs. Armin M. Cariaga as Provincial answer (Annex "3," ibid, Rollo, pp. 101-103) on August 31,
Treasurer of Abra, Gaspar V. Bosque as Municipal 1972.
Treasurer of Bangued, Abra and Paterno Millare,
defendants," the decretal portion of which reads: On September 1, 1972 the respondent Paterno Millare filed
his answer (Annex "5," ibid; Rollo, pp. 106-108).
IN VIEW OF ALL THE FOREGOING, the
Court hereby declares: On October 12, 1972, with the aforesaid sale of the school
premises at public auction, the respondent Judge, Hon.
That the distraint seizure and sale by the Juan P. Aquino of the Court of First Instance of Abra,
Municipal Treasurer of Bangued, Abra, the Branch I, ordered (Annex "6," ibid; Rollo, pp. 109-110) the
Provincial Treasurer of said province respondents provincial and municipal treasurers to deliver
against the lot and building of the Abra to the Clerk of Court the proceeds of the auction sale.
Valley Junior College, Inc., represented by Hence, on December 14, 1972, petitioner, through Director
Director Pedro Borgonia located at Borgonia, deposited with the trial court the sum of
Bangued, Abra, is valid; P6,000.00 evidenced by PNB Check No. 904369.

That since the school is not exempt from On April 12, 1973, the parties entered into a stipulation of
paying taxes, it should therefore pay all facts adopted and embodied by the trial court in its
back taxes in the amount of P5,140.31 questioned decision. Said Stipulations reads:
and back taxes and penalties from the
promulgation of this decision; STIPULATION OF FACTS

That the amount deposited by the plaintaff COME NOW the parties, assisted by
him the sum of P60,000.00 before the trial, counsels, and to this Honorable Court
be confiscated to apply for the payment of respectfully enter into the following agreed
the back taxes and for the redemption of stipulation of facts:
the property in question, if the amount is
less than P6,000.00, the remainder must 1. That the personal circumstances of the
be returned to the Director of Pedro parties as stated in paragraph 1 of the
Borgonia, who represents the plaintiff complaint is admitted; but the particular
herein; person of Mr. Armin M. Cariaga is to be
substituted, however, by anyone who is
That the deposit of the Municipal actually holding the position of Provincial
Treasurer in the amount of P6,000.00 also Treasurer of the Province of Abra;
before the trial must be returned to said
Municipal Treasurer of Bangued, Abra; 2. That the plaintiff Abra Valley Junior
College, Inc. is the owner of the lot and
And finally the case is hereby ordered buildings thereon located in Bangued,
dismissed with costs against the plaintiff. Abra under Original Certificate of Title No.
0-83;
SO ORDERED. (Rollo, pp. 22-23)
3. That the defendant Gaspar V. Bosque,
Petitioner, an educational corporation and institution of as Municipal treasurer of Bangued, Abra
higher learning duly incorporated with the Securities and caused to be served upon the Abra Valley
Exchange Commission in 1948, filed a complaint (Annex Junior College, Inc. a Notice of Seizure on
"1" of Answer by the respondents Heirs of Paterno Millare; the property of said school under Original
Rollo, pp. 95-97) on July 10, 1972 in the court a quo to Certificate of Title No. 0-83 for the
annul and declare void the "Notice of Seizure' and the satisfaction of real property taxes thereon,
"Notice of Sale" of its lot and building located at Bangued, amounting to P5,140.31; the Notice of
Abra, for non-payment of real estate taxes and penalties Seizure being the one attached to the
amounting to P5,140.31. Said "Notice of Seizure" of the complaint as Exhibit A;
college lot and building covered by Original Certificate of
Title No. Q-83 duly registered in the name of petitioner, 4. That on June 8, 1972 the above
plaintiff below, on July 6, 1972, by respondents Municipal properties of the Abra Valley Junior
Treasurer and Provincial Treasurer, defendants below, was College, Inc. was sold at public auction for
issued for the satisfaction of the said taxes thereon. The the satisfaction of the unpaid real property
"Notice of Sale" was caused to be served upon the taxes thereon and the same was sold to
1
 defendant Paterno Millare who offered the before this Court, which petition was filed on August 17,
highest bid of P6,000.00 and a Certificate 1974 (Rollo, p.2).
of Sale in his favor was issued by the
defendant Municipal Treasurer. In the resolution dated August 16, 1974, this Court resolved
to give DUE COURSE to the petition (Rollo, p. 58).
5. That all other matters not particularly Respondents were required to answer said petition (Rollo,
and specially covered by this stipulation of p. 74).
facts will be the subject of evidence by the
parties. Petitioner raised the following assignments of error:

WHEREFORE, it is respectfully prayed of I

the Honorable Court to consider and admit
this stipulation of facts on the point agreed
THE COURT A QUO ERRED IN SUSTAINING AS VALID
upon by the parties.
THE SEIZURE AND SALE OF THE COLLEGE LOT AND
BUILDING USED FOR EDUCATIONAL PURPOSES OF
Bangued, Abra, April 12, 1973. THE PETITIONER.

Sgd. Agripino Brillantes II

Typ AGRIPINO BRILLANTES
Attorney for Plaintiff
THE COURT A QUO ERRED IN DECLARING THAT THE
COLLEGE LOT AND BUILDING OF THE PETITIONER
Sgd. Loreto Roldan ARE NOT USED EXCLUSIVELY FOR EDUCATIONAL
Typ LORETO ROLDAN PURPOSES MERELY BECAUSE THE COLLEGE
Provincial Fiscal PRESIDENT RESIDES IN ONE ROOM OF THE
Counsel for Defendants COLLEGE BUILDING.
Provincial Treasurer of
Abra and the Municipal
III
Treasurer of Bangued, Abra

THE COURT A QUO ERRED IN DECLARING THAT THE

EMETRIO V. PRE
COLLEGE LOT AND BUILDING OF THE PETITIONER
Attorney for Defendant
ARE NOT EXEMPT FROM PROPERTY TAXES AND IN
Paterno Millare (Rollo, p. 17-18)
ORDERING PETITIONER TO PAY P5,140.31 AS REALTY
TAXES.
Aside from the Stipulation of Facts, the trial court among
others, found the following: (a) that the school is recognized
IV
by the government and is offering Primary, High School and
College Courses, and has a school population of more than
one thousand students all in all; (b) that it is located right in THE COURT A QUO ERRED IN ORDERING THE
the heart of the town of Bangued, a few meters from the CONFISCATION OF THE P6,000.00 DEPOSIT MADE IN
plaza and about 120 meters from the Court of First Instance THE COURT BY PETITIONER AS PAYMENT OF THE
building; (c) that the elementary pupils are housed in a two- P5,140.31 REALTY TAXES. (See Brief for the Petitioner,
storey building across the street; (d) that the high school pp. 1-2)
and college students are housed in the main building; (e)
that the Director with his family is in the second floor of the The main issue in this case is the proper interpretation of
main building; and (f) that the annual gross income of the the phrase "used exclusively for educational purposes."
school reaches more than one hundred thousand pesos.
Petitioner contends that the primary use of the lot and
From all the foregoing, the only issue left for the Court to building for educational purposes, and not the incidental
determine and as agreed by the parties, is whether or not use thereof, determines and exemption from property taxes
the lot and building in question are used exclusively for under Section 22 (3), Article VI of the 1935 Constitution.
educational purposes. (Rollo, p. 20) Hence, the seizure and sale of subject college lot and
building, which are contrary thereto as well as to the
The succeeding Provincial Fiscal, Hon. Jose A. Solomon provision of Commonwealth Act No. 470, otherwise known
and his Assistant, Hon. Eustaquio Z. Montero, filed a as the Assessment Law, are without legal basis and
Memorandum for the Government on March 25, 1974, and therefore void.
a Supplemental Memorandum on May 7, 1974, wherein
they opined "that based on the evidence, the laws On the other hand, private respondents maintain that the
applicable, court decisions and jurisprudence, the school college lot and building in question which were subjected to
building and school lot used for educational purposes of the seizure and sale to answer for the unpaid tax are used: (1)
Abra Valley College, Inc., are exempted from the payment for the educational purposes of the college; (2) as the
of taxes." (Annexes "B," "B-1" of Petition; Rollo, pp. 24-49; permanent residence of the President and Director thereof,
44 and 49). Mr. Pedro V. Borgonia, and his family including the in-laws
and grandchildren; and (3) for commercial purposes
Nonetheless, the trial court disagreed because of the use of because the ground floor of the college building is being
the second floor by the Director of petitioner school for used and rented by a commercial establishment, the
residential purposes. He thus ruled for the government and Northern Marketing Corporation (See photograph attached
rendered the assailed decision. as Annex "8" (Comment; Rollo, p. 90]).

After having been granted by the trial court ten (10) days Due to its time frame, the constitutional provision which
from August 6, 1974 within which to perfect its appeal (Per finds application in the case at bar is Section 22, paragraph
Order dated August 6, 1974; Annex "G" of Petition; Rollo, p. 3, Article VI, of the then 1935 Philippine Constitution, which
57) petitioner instead availed of the instant petition for expressly grants exemption from realty taxes for
review on certiorari with prayer for preliminary injunction "Cemeteries, churches and parsonages or convents

2
appurtenant thereto, and all lands, buildings, and The test of exemption from taxation is the use of the
improvements used exclusively for religious, charitable or property for purposes mentioned in the Constitution
educational purposes ... (Apostolic Prefect v. City Treasurer of Baguio, 71 Phil, 547
[1941]).
Relative thereto, Section 54, paragraph c, Commonwealth
Act No. 470 as amended by Republic Act No. 409, It must be stressed however, that while this Court allows a
otherwise known as the Assessment Law, provides: more liberal and non-restrictive interpretation of the phrase
"exclusively used for educational purposes" as provided for
The following are exempted from real in Article VI, Section 22, paragraph 3 of the 1935 Philippine
property tax under the Assessment Law: Constitution, reasonable emphasis has always been made
that exemption extends to facilities which are incidental to
and reasonably necessary for the accomplishment of the
xxx xxx xxx
main purposes. Otherwise stated, the use of the school
building or lot for commercial purposes is neither
(c) churches and parsonages or convents contemplated by law, nor by jurisprudence. Thus, while the
appurtenant thereto, and all lands, use of the second floor of the main building in the case at
buildings, and improvements used bar for residential purposes of the Director and his family,
exclusively for religious, charitable, may find justification under the concept of incidental use,
scientific or educational purposes. which is complimentary to the main or primary purpose—
educational, the lease of the first floor thereof to the
xxx xxx xxx Northern Marketing Corporation cannot by any stretch of
the imagination be considered incidental to the purpose of
In this regard petitioner argues that the primary use of the education.
school lot and building is the basic and controlling guide,
norm and standard to determine tax exemption, and not the It will be noted however that the aforementioned lease
mere incidental use thereof. appears to have been raised for the first time in this Court.
That the matter was not taken up in the to court is really
As early as 1916 in YMCA of Manila vs. Collector of lnternal apparent in the decision of respondent Judge. No mention
Revenue, 33 Phil. 217 [1916], this Court ruled that while it thereof was made in the stipulation of facts, not even in the
may be true that the YMCA keeps a lodging and a boarding description of the school building by the trial judge, both
house and maintains a restaurant for its members, still embodied in the decision nor as one of the issues to
these do not constitute business in the ordinary acceptance resolve in order to determine whether or not said properly
of the word, but an institution used exclusively for religious, may be exempted from payment of real estate taxes (Rollo,
charitable and educational purposes, and as such, it is pp. 17-23). On the other hand, it is noteworthy that such
entitled to be exempted from taxation. fact was not disputed even after it was raised in this Court.

In the case of Bishop of Nueva Segovia v. Provincial Board Indeed, it is axiomatic that facts not raised in the lower court
of Ilocos Norte, 51 Phil. 352 [1972], this Court included in cannot be taken up for the first time on appeal.
the exemption a vegetable garden in an adjacent lot and Nonetheless, as an exception to the rule, this Court has
another lot formerly used as a cemetery. It was clarified that held that although a factual issue is not squarely raised
the term "used exclusively" considers incidental use also. below, still in the interest of substantial justice, this Court is
Thus, the exemption from payment of land tax in favor of not prevented from considering a pivotal factual matter.
the convent includes, not only the land actually occupied by "The Supreme Court is clothed with ample authority to
the building but also the adjacent garden devoted to the review palpable errors not assigned as such if it finds that
incidental use of the parish priest. The lot which is not used their consideration is necessary in arriving at a just
for commercial purposes but serves solely as a sort of decision." (Perez vs. Court of Appeals, 127 SCRA 645
lodging place, also qualifies for exemption because this [1984]).
constitutes incidental use in religious functions.
Under the 1935 Constitution, the trial court correctly arrived
The phrase "exclusively used for educational purposes" at the conclusion that the school building as well as the lot
was further clarified by this Court in the cases of Herrera vs. where it is built, should be taxed, not because the second
Quezon City Board of assessment Appeals, 3 SCRA 186 floor of the same is being used by the Director and his
[1961] and Commissioner of Internal Revenue vs. Bishop of family for residential purposes, but because the first floor
the Missionary District, 14 SCRA 991 [1965], thus — thereof is being used for commercial purposes. However,
since only a portion is used for purposes of commerce, it is
only fair that half of the assessed tax be returned to the
Moreover, the exemption in favor of school involved.
property used exclusively for charitable or
educational purposes is 'not limited to
property actually indispensable' therefor PREMISES CONSIDERED, the decision of the Court of
(Cooley on Taxation, Vol. 2, p. 1430), but First Instance of Abra, Branch I, is hereby AFFIRMED
extends to facilities which are incidental to subject to the modification that half of the assessed tax
and reasonably necessary for the be returned to the petitioner.
accomplishment of said purposes, such as
in the case of hospitals, "a school for SO ORDERED.
training nurses, a nurses' home, property
use to provide housing facilities for interns,
resident doctors, superintendents, and
other members of the hospital staff, and
recreational facilities for student nurses,
interns, and residents' (84 CJS 6621),
such as "Athletic fields" including "a firm
used for the inmates of the institution.
(Cooley on Taxation, Vol. 2, p. 1430).

3
G.R. No. 144104 June 29, 2004 The QC-LBAA’s decision was, likewise, affirmed on appeal
by the Central Board of Assessment Appeals of Quezon
LUNG CENTER OF THE PHILIPPINES, petitioner, City (CBAA, for brevity)7 which ruled that the petitioner was
not a charitable institution and that its real properties were
not actually, directly and exclusively used for charitable
vs.
purposes; hence, it was not entitled to real property tax
exemption under the constitution and the law. The petitioner
QUEZON CITY and CONSTANTINO P. ROSAS, in his sought relief from the Court of Appeals, which rendered
capacity as City Assessor of Quezon City, respondents. judgment affirming the decision of the CBAA.8

DECISION Undaunted, the petitioner filed its petition in this Court

contending that:
CALLEJO, SR., J.:
A. THE COURT A QUO ERRED IN DECLARING
This is a petition for review on certiorari under Rule 45 of PETITIONER AS NOT ENTITLED TO REALTY TAX
the Rules of Court, as amended, of the Decision1 dated EXEMPTIONS ON THE GROUND THAT ITS LAND,
July 17, 2000 of the Court of Appeals in CA-G.R. SP No. BUILDING AND IMPROVEMENTS, SUBJECT OF
57014 which affirmed the decision of the Central Board of ASSESSMENT, ARE NOT ACTUALLY, DIRECTLY AND
Assessment Appeals holding that the lot owned by the EXCLUSIVELY DEVOTED FOR CHARITABLE
petitioner and its hospital building constructed thereon are PURPOSES.
subject to assessment for purposes of real property tax.
B. WHILE PETITIONER IS NOT DECLARED AS REAL
The Antecedents PROPERTY TAX EXEMPT UNDER ITS CHARTER, PD
1823, SAID EXEMPTION MAY NEVERTHELESS BE
The petitioner Lung Center of the Philippines is a non-stock EXTENDED UPON PROPER APPLICATION.
and non-profit entity established on January 16, 1981 by
virtue of Presidential Decree No. 1823.2 It is the registered The petitioner avers that it is a charitable institution within
owner of a parcel of land, particularly described as Lot No. the context of Section 28(3), Article VI of the 1987
RP-3-B-3A-1-B-1, SWO-04-000495, located at Quezon Constitution. It asserts that its character as a charitable
Avenue corner Elliptical Road, Central District, Quezon institution is not altered by the fact that it admits paying
City. The lot has an area of 121,463 square meters and is patients and renders medical services to them, leases
covered by Transfer Certificate of Title (TCT) No. 261320 of portions of the land to private parties, and rents out portions
the Registry of Deeds of Quezon City. Erected in the middle of the hospital to private medical practitioners from which it
of the aforesaid lot is a hospital known as the Lung Center derives income to be used for operational expenses. The
of the Philippines. A big space at the ground floor is being petitioner points out that for the years 1995 to 1999, 100%
leased to private parties, for canteen and small store of its out-patients were charity patients and of the hospital’s
spaces, and to medical or professional practitioners who 282-bed capacity, 60% thereof, or 170 beds, is allotted to
use the same as their private clinics for their patients whom charity patients. It asserts that the fact that it receives
they charge for their professional services. Almost one-half subsidies from the government attests to its character as a
of the entire area on the left side of the building along charitable institution. It contends that the "exclusivity"
Quezon Avenue is vacant and idle, while a big portion on required in the Constitution does not necessarily mean
the right side, at the corner of Quezon Avenue and Elliptical "solely." Hence, even if a portion of its real estate is leased
Road, is being leased for commercial purposes to a private out to private individuals from whom it derives income, it
enterprise known as the Elliptical Orchids and Garden does not lose its character as a charitable institution, and its
Center. exemption from the payment of real estate taxes on its real
property. The petitioner cited our ruling in Herrera v. QC-
The petitioner accepts paying and non-paying patients. It BAA9 to bolster its pose. The petitioner further contends
also renders medical services to out-patients, both paying that even if P.D. No. 1823 does not exempt it from the
and non-paying. Aside from its income from paying payment of real estate taxes, it is not precluded from
patients, the petitioner receives annual subsidies from the seeking tax exemption under the 1987 Constitution.
government.
In their comment on the petition, the respondents aver that
On June 7, 1993, both the land and the hospital building of the petitioner is not a charitable entity. The petitioner’s real
the petitioner were assessed for real property taxes in the property is not exempt from the payment of real estate
amount of ₱4,554,860 by the City Assessor of Quezon taxes under P.D. No. 1823 and even under the 1987
City.3 Accordingly, Tax Declaration Nos. C-021-01226 (16- Constitution because it failed to prove that it is a charitable
2518) and C-021-01231 (15-2518-A) were issued for the institution and that the said property is actually, directly and
land and the hospital building, respectively.4 On August 25, exclusively used for charitable purposes. The respondents
1993, the petitioner filed a Claim for Exemption5 from real noted that in a newspaper report, it appears that graft
property taxes with the City Assessor, predicated on its charges were filed with the Sandiganbayan against the
claim that it is a charitable institution. The petitioner’s director of the petitioner, its administrative officer, and
request was denied, and a petition was, thereafter, filed Zenaida Rivera, the proprietress of the Elliptical Orchids
before the Local Board of Assessment Appeals of Quezon and Garden Center, for entering into a lease contract over
City (QC-LBAA, for brevity) for the reversal of the resolution 7,663.13 square meters of the property in 1990 for only
of the City Assessor. The petitioner alleged that under ₱20,000 a month, when the monthly rental should be
Section 28, paragraph 3 of the 1987 Constitution, the ₱357,000 a month as determined by the Commission on
property is exempt from real property taxes. It averred that Audit; and that instead of complying with the directive of the
a minimum of 60% of its hospital beds are exclusively used COA for the cancellation of the contract for being grossly
for charity patients and that the major thrust of its hospital prejudicial to the government, the petitioner renewed the
operation is to serve charity patients. The petitioner same on March 13, 1995 for a monthly rental of only
contends that it is a charitable institution and, as such, is ₱24,000. They assert that the petitioner uses the subsidies
exempt from real property taxes. The QC-LBAA rendered granted by the government for charity patients and uses the
judgment dismissing the petition and holding the petitioner rest of its income from the property for the benefit of paying
liable for real property taxes.6 patients, among other purposes. They aver that the
petitioner failed to adduce substantial evidence that 100%
4
of its out-patients and 170 beds in the hospital are reserved in the Philippines. The raison d’etre for the creation of the
for indigent patients. The respondents further assert, thus: petitioner is stated in the decree, viz:

13. That the claims/allegations of the Petitioner LCP do not Whereas, for decades, respiratory diseases have been a
speak well of its record of service. That before a patient is priority concern, having been the leading cause of illness
admitted for treatment in the Center, first impression is that and death in the Philippines, comprising more than 45% of
it is pay-patient and required to pay a certain amount as the total annual deaths from all causes, thus, exacting a
deposit. That even if a patient is living below the poverty tremendous toll on human resources, which ailments are
line, he is charged with high hospital bills. And, without likely to increase and degenerate into serious lung diseases
these bills being first settled, the poor patient cannot be on account of unabated pollution, industrialization and
allowed to leave the hospital or be discharged without first unchecked cigarette smoking in the country;lavvph!l.net
paying the hospital bills or issue a promissory note
guaranteed and indorsed by an influential agency or person Whereas, the more common lung diseases are, to a great
known only to the Center; that even the remains of extent, preventable, and curable with early and adequate
deceased poor patients suffered the same fate. Moreover, medical care, immunization and through prompt and
before a patient is admitted for treatment as free or charity intensive prevention and health education programs;
patient, one must undergo a series of interviews and must
submit all the requirements needed by the Center, usually
Whereas, there is an urgent need to consolidate and
accompanied by endorsement by an influential agency or
person known only to the Center. These facts were heard reinforce existing programs, strategies and efforts at
and admitted by the Petitioner LCP during the hearings preventing, treating and rehabilitating people affected by
before the Honorable QC-BAA and Honorable CBAA. lung diseases, and to undertake research and training on
These are the reasons of indigent patients, instead of the cure and prevention of lung diseases, through a Lung
seeking treatment with the Center, they prefer to be treated Center which will house and nurture the above and related
at the Quezon Institute. Can such practice by the Center be activities and provide tertiary-level care for more difficult
called charitable?10 and problematical cases;

The Issues Whereas, to achieve this purpose, the Government intends

to provide material and financial support towards the
establishment and maintenance of a Lung Center for the
The issues for resolution are the following: (a) whether the welfare and benefit of the Filipino people.15
petitioner is a charitable institution within the context of
Presidential Decree No. 1823 and the 1973 and 1987
The purposes for which the petitioner was created are
Constitutions and Section 234(b) of Republic Act No. 7160;
spelled out in its Articles of Incorporation, thus:
and (b) whether the real properties of the petitioner are
exempt from real property taxes.
SECOND: That the purposes for which such corporation is
The Court’s Ruling formed are as follows:

The petition is partially granted. 1. To construct, establish, equip, maintain, administer and
conduct an integrated medical institution which shall
specialize in the treatment, care, rehabilitation and/or relief
On the first issue, we hold that the petitioner is a charitable of lung and allied diseases in line with the concern of the
institution within the context of the 1973 and 1987 government to assist and provide material and financial
Constitutions. To determine whether an enterprise is a support in the establishment and maintenance of a lung
charitable institution/entity or not, the elements which center primarily to benefit the people of the Philippines and
should be considered include the statute creating the in pursuance of the policy of the State to secure the well-
enterprise, its corporate purposes, its constitution and by- being of the people by providing them specialized health
laws, the methods of administration, the nature of the actual and medical services and by minimizing the incidence of
work performed, the character of the services rendered, the lung diseases in the country and elsewhere.
indefiniteness of the beneficiaries, and the use and
occupation of the properties.11
2. To promote the noble undertaking of scientific research
related to the prevention of lung or pulmonary ailments and
In the legal sense, a charity may be fully defined as a gift, to the care of lung patients, including the holding of a series of
be applied consistently with existing laws, for the benefit of relevant congresses, conventions, seminars and
an indefinite number of persons, either by bringing their conferences;
minds and hearts under the influence of education or
religion, by assisting them to establish themselves in life or
otherwise lessening the burden of government.12 It may be 3. To stimulate and, whenever possible, underwrite
applied to almost anything that tend to promote the well- scientific researches on the biological, demographic, social,
doing and well-being of social man. It embraces the economic, eugenic and physiological aspects of lung or
improvement and promotion of the happiness of man.13 pulmonary diseases and their control; and to collect and
The word "charitable" is not restricted to relief of the poor or publish the findings of such research for public
consumption;
sick.14 The test of a charity and a charitable organization
are in law the same. The test whether an enterprise is
charitable or not is whether it exists to carry out a purpose 4. To facilitate the dissemination of ideas and public
reorganized in law as charitable or whether it is maintained acceptance of information on lung consciousness or
for gain, profit, or private advantage. awareness, and the development of fact-finding, information
and reporting facilities for and in aid of the general
Under P.D. No. 1823, the petitioner is a non-profit and non- purposes or objects aforesaid, especially in human lung
stock corporation which, subject to the provisions of the requirements, general health and physical fitness, and other
relevant or related fields;
decree, is to be administered by the Office of the President
of the Philippines with the Ministry of Health and the
Ministry of Human Settlements. It was organized for the 5. To encourage the training of physicians, nurses, health
welfare and benefit of the Filipino people principally to help officers, social workers and medical and technical
combat the high incidence of lung and pulmonary diseases
5
personnel in the practical and scientific implementation of … [A]n institution does not lose its charitable character, and
services to lung patients; consequent exemption from taxation, by reason of the fact
that those recipients of its benefits who are able to pay are
6. To assist universities and research institutions in their required to do so, where no profit is made by the institution
studies about lung diseases, to encourage advanced and the amounts so received are applied in furthering its
training in matters of the lung and related fields and to charitable purposes, and those benefits are refused to none
support educational programs of value to general health; on account of inability to pay therefor. The fundamental
ground upon which all exemptions in favor of charitable
institutions are based is the benefit conferred upon the
7. To encourage the formation of other organizations on the public by them, and a consequent relief, to some extent, of
national, provincial and/or city and local levels; and to the burden upon the state to care for and advance the
coordinate their various efforts and activities for the purpose interests of its citizens.20
of achieving a more effective programmatic approach on
the common problems relative to the objectives enumerated
herein; As aptly stated by the State Supreme Court of South
Dakota in Lutheran Hospital Association of South Dakota v.
Baker:21
8. To seek and obtain assistance in any form from both
international and local foundations and organizations; and
to administer grants and funds that may be given to the … [T]he fact that paying patients are taken, the profits
organization; derived from attendance upon these patients being
exclusively devoted to the maintenance of the charity,
seems rather to enhance the usefulness of the institution to
9. To extend, whenever possible and expedient, medical
the poor; for it is a matter of common observation amongst
services to the public and, in general, to promote and
those who have gone about at all amongst the suffering
protect the health of the masses of our people, which has
classes, that the deserving poor can with difficulty be
long been recognized as an economic asset and a social
persuaded to enter an asylum of any kind confined to the
blessing;
reception of objects of charity; and that their honest pride is
much less wounded by being placed in an institution in
10. To help prevent, relieve and alleviate the lung or which paying patients are also received. The fact of
pulmonary afflictions and maladies of the people in any and receiving money from some of the patients does not, we
all walks of life, including those who are poor and needy, all think, at all impair the character of the charity, so long as
without regard to or discrimination, because of race, creed, the money thus received is devoted altogether to the
color or political belief of the persons helped; and to enable charitable object which the institution is intended to
them to obtain treatment when such disorders occur; further.22

11. To participate, as circumstances may warrant, in any The money received by the petitioner becomes a part of the
activity designed and carried on to promote the general trust fund and must be devoted to public trust purposes and
health of the community; cannot be diverted to private profit or benefit.23

12. To acquire and/or borrow funds and to own all funds or Under P.D. No. 1823, the petitioner is entitled to receive
equipment, educational materials and supplies by donations. The petitioner does not lose its character as a
purchase, donation, or otherwise and to dispose of and charitable institution simply because the gift or donation is
distribute the same in such manner, and, on such basis as in the form of subsidies granted by the government. As held
the Center shall, from time to time, deem proper and best, by the State Supreme Court of Utah in Yorgason v. County
under the particular circumstances, to serve its general and Board of Equalization of Salt Lake County:24
non-profit purposes and objectives;lavvphil.net
Second, the … government subsidy payments are provided
13. To buy, purchase, acquire, own, lease, hold, sell, to the project. Thus, those payments are like a gift or
exchange, transfer and dispose of properties, whether real donation of any other kind except they come from the
or personal, for purposes herein mentioned; and government. In both Intermountain Health Careand the
present case, the crux is the presence or absence of
14. To do everything necessary, proper, advisable or material reciprocity. It is entirely irrelevant to this analysis
convenient for the accomplishment of any of the powers that the government, rather than a private benefactor,
herein set forth and to do every other act and thing chose to make up the deficit resulting from the exchange
incidental thereto or connected therewith.16 between St. Mark’s Tower and the tenants by making a
contribution to the landlord, just as it would have been
Hence, the medical services of the petitioner are to be irrelevant in Intermountain Health Care if the patients’
rendered to the public in general in any and all walks of life income supplements had come from private individuals
including those who are poor and the needy without rather than the government.
discrimination. After all, any person, the rich as well as the
poor, may fall sick or be injured or wounded and become a Therefore, the fact that subsidization of part of the cost of
subject of charity.17 furnishing such housing is by the government rather than
private charitable contributions does not dictate the denial
As a general principle, a charitable institution does not lose of a charitable exemption if the facts otherwise support
its character as such and its exemption from taxes simply such an exemption, as they do here.25
because it derives income from paying patients, whether
out-patient, or confined in the hospital, or receives In this case, the petitioner adduced substantial evidence
subsidies from the government, so long as the money that it spent its income, including the subsidies from the
received is devoted or used altogether to the charitable government for 1991 and 1992 for its patients and for the
object which it is intended to achieve; and no money inures operation of the hospital. It even incurred a net loss in 1991
to the private benefit of the persons managing or operating and 1992 from its operations.
the institution.18 In Congregational Sunday School, etc. v.
Board of Review,19 the State Supreme Court of Illinois Even as we find that the petitioner is a charitable institution,
held, thus: we hold, anent the second issue, that those portions of its
real property that are leased to private entities are not
6
exempt from real property taxes as these are not actually, human mind. They are predicated upon one’s own
directly and exclusively used for charitable purposes. voluntary act and not upon that of others. They proceed
from the premise that the legislature would not have made
The settled rule in this jurisdiction is that laws granting specified enumeration in a statute had the intention been
exemption from tax are construed strictissimi juris against not to restrict its meaning and confine its terms to those
the taxpayer and liberally in favor of the taxing power. expressly mentioned.30
Taxation is the rule and exemption is the exception. The
effect of an exemption is equivalent to an appropriation. The exemption must not be so enlarged by construction
Hence, a claim for exemption from tax payments must be since the reasonable presumption is that the State has
clearly shown and based on language in the law too plain to granted in express terms all it intended to grant at all, and
be mistaken.26 As held in Salvation Army v. Hoehn:27 that unless the privilege is limited to the very terms of the
statute the favor would be intended beyond what was
An intention on the part of the legislature to grant an meant.31
exemption from the taxing power of the state will never be
implied from language which will admit of any other Section 28(3), Article VI of the 1987 Philippine Constitution
reasonable construction. Such an intention must be provides, thus:
expressed in clear and unmistakable terms, or must appear
by necessary implication from the language used, for it is a (3) Charitable institutions, churches and parsonages or
well settled principle that, when a special privilege or convents appurtenant thereto, mosques, non-profit
exemption is claimed under a statute, charter or act of cemeteries, and all lands, buildings, and improvements,
incorporation, it is to be construed strictly against the actually, directly and exclusively used for religious,
property owner and in favor of the public. This principle charitable or educational purposes shall be exempt from
applies with peculiar force to a claim of exemption from taxation.32
taxation . …28
The tax exemption under this constitutional provision covers
Section 2 of Presidential Decree No. 1823, relied upon by property taxes only.33 As Chief Justice Hilario G. Davide,
the petitioner, specifically provides that the petitioner shall Jr., then a member of the 1986 Constitutional Commission,
enjoy the tax exemptions and privileges: explained: ". . . what is exempted is not the institution itself .
. .; those exempted from real estate taxes are lands,
SEC. 2. TAX EXEMPTIONS AND PRIVILEGES. Being a buildings and improvements actually, directly and
non-profit, non-stock corporation organized primarily to help exclusively used for religious, charitable or educational
combat the high incidence of lung and pulmonary diseases purposes."34
in the Philippines, all donations, contributions, endowments
and equipment and supplies to be imported by authorized Consequently, the constitutional provision is implemented
entities or persons and by the Board of Trustees of the by Section 234(b) of Republic Act No. 7160 (otherwise
Lung Center of the Philippines, Inc., for the actual use and known as the Local Government Code of 1991) as follows:
benefit of the Lung Center, shall be exempt from income
and gift taxes, the same further deductible in full for the
SECTION 234. Exemptions from Real Property Tax. – The
purpose of determining the maximum deductible amount
following are exempted from payment of the real property
under Section 30, paragraph (h), of the National Internal
tax:
Revenue Code, as amended.

...
The Lung Center of the Philippines shall be exempt from
the payment of taxes, charges and fees imposed by the
Government or any political subdivision or instrumentality (b) Charitable institutions, churches, parsonages or
thereof with respect to equipment purchases made by, or convents appurtenant thereto, mosques, non-profit or
for the Lung Center.29 religious cemeteries and all lands, buildings, and
improvements actually, directly, and exclusivelyused for
religious, charitable or educational purposes.35
It is plain as day that under the decree, the petitioner does
not enjoy any property tax exemption privileges for its real
properties as well as the building constructed thereon. If the We note that under the 1935 Constitution, "... all lands,
intentions were otherwise, the same should have been buildings, and improvements used ‘exclusively’ for …
among the enumeration of tax exempt privileges under charitable … purposes shall be exempt from taxation."36
Section 2: However, under the 1973 and the present Constitutions, for
"lands, buildings, and improvements" of the charitable
It is a settled rule of statutory construction that the express institution to be considered exempt, the same should not
mention of one person, thing, or consequence implies the only be "exclusively" used for charitable purposes; it is
exclusion of all others. The rule is expressed in the familiar required that such property be used "actually" and "directly"
maxim, expressio unius est exclusio alterius. for such purposes.37

In light of the foregoing substantial changes in the

The rule of expressio unius est exclusio alterius is
Constitution, the petitioner cannot rely on our ruling in
formulated in a number of ways. One variation of the rule is
Herrera v. Quezon City Board of Assessment Appeals
the principle that what is expressed puts an end to that
which was promulgated on September 30, 1961 before the
which is implied. Expressium facit cessare tacitum. Thus,
1973 and 1987 Constitutions took effect.38 As this Court
where a statute, by its terms, is expressly limited to certain
held in Province of Abra v. Hernando:39
matters, it may not, by interpretation or construction, be
extended to other matters.
… Under the 1935 Constitution: "Cemeteries, churches,
... and parsonages or convents appurtenant thereto, and all
lands, buildings, and improvements used exclusively for
religious, charitable, or educational purposes shall be
The rule of expressio unius est exclusio alterius and its exempt from taxation." The present Constitution added
variations are canons of restrictive interpretation. They are "charitable institutions, mosques, and non-profit
based on the rules of logic and the natural workings of the cemeteries" and required that for the exemption of "lands,
7
buildings, and improvements," they should not only be G.R. No. L-7988 January 19, 1916
"exclusively" but also "actually" and "directly" used for
religious or charitable purposes. The Constitution is worded THE YOUNG MEN'S CHRISTIAN ASSOCIATION OF
differently. The change should not be ignored. It must be MANILA, plaintiff-appellant,
duly taken into consideration. Reliance on past decisions
would have sufficed were the words "actually" as well as
vs.
"directly" not added. There must be proof therefore of the
actual and direct use of the lands, buildings, and
improvements for religious or charitable purposes to be THE COLLECTOR OF INTERNAL REVENUE, defendant-
exempt from taxation. … appellee.

Under the 1973 and 1987 Constitutions and Rep. Act No. Haussermann, Cohn and Fisher for appellant.
7160 in order to be entitled to the exemption, the petitioner
is burdened to prove, by clear and unequivocal proof, that City Attorney Escaler for appellee.
(a) it is a charitable institution; and (b) its real properties are
ACTUALLY, DIRECTLY and EXCLUSIVELY used for MORELAND, J.:
charitable purposes. "Exclusive" is defined as possessed
and enjoyed to the exclusion of others; debarred from
participation or enjoyment; and "exclusively" is defined, "in The question at issue in this case is whether or not the
a manner to exclude; as enjoying a privilege exclusively."40 building and grounds of the Young Men's Christian
If real property is used for one or more commercial Association of Manila are subject to taxation, under section
purposes, it is not exclusively used for the exempted 48 of the charter of the city of Manila quoted in the footnote
purposes but is subject to taxation.41 The words "dominant [syllabus].
use" or "principal use" cannot be substituted for the words
"used exclusively" without doing violence to the The city of Manila, contending that the property is taxable,
Constitutions and the law.42 Solely is synonymous with assessed it and levied a tax thereon. It was paid under
exclusively.43 protest and this action begun to recover it on the ground
that the property was exempt from taxation under the
What is meant by actual, direct and exclusive use of the charter of the city of Manila. The decision was for the city
property for charitable purposes is the direct and immediate and the association appealed.
and actual application of the property itself to the purposes
for which the charitable institution is organized. It is not the The Young Men's Christian Association came to the
use of the income from the real property that is Philippine with the army of occupation in 1898. When the
determinative of whether the property is used for tax- large body of troops in Manila was removed to permanent
exempt purposes.44 quarters at Fort William McKinley in February, 1905, an
independent association for Manila was organized under
The petitioner failed to discharge its burden to prove that the direction of the Army and navy departments. Shortly
the entirety of its real property is actually, directly and after the organization of the association the directors made
exclusively used for charitable purposes. While portions of a formal request to the international committee of the
the hospital are used for the treatment of patients and the Young Men's Christian Association in New York City for the
dispensation of medical services to them, whether paying or assistance and cooperation of its foreign department. I
non-paying, other portions thereof are being leased to response to this request Mr. John R. Mott, general
private individuals for their clinics and a canteen. Further, a secretary of the foreign department, visited Manila in
portion of the land is being leased to a private individual for January 1907. After a conference with the directors and
her business enterprise under the business name "Elliptical interested friends it was decided to conduct a campaign to
Orchids and Garden Center." Indeed, the petitioner’s secure funds for an adequate and permanent association.
evidence shows that it collected ₱1,136,483.45 as rentals in In the name of the international committee and friends in
1991 and ₱1,679,999.28 for 1992 from the said lessees. America Mr. Mott guaranteed P170,000 for the construction
of a building on condition that friend in the Philippines
secure the site and adequately furnish the building. The
Accordingly, we hold that the portions of the land leased to campaign for funds was begun here on February 15, 1907,
private entities as well as those parts of the hospital leased and, by the 15th of March following, P83,000 was
to private individuals are not exempt from such taxes.45 On subscribed, nearly one thousand different persons
the other hand, the portions of the land occupied by the contributing. Thereupon the Young Men's Christian
hospital and portions of the hospital used for its patients, Association of Manila was incorporated under the law of the
whether paying or non-paying, are exempt from real Philippine Islands and received its character in June, 1907.
property taxes.
A site for the new building was selected on Calle
IN LIGHT OF ALL THE FOREGOING, the petition is Concepcion, Ermita, and the building contract was let on
PARTIALLY GRANTED. The respondent Quezon City the 8th of January following. The cornerstone was laid with
Assessor is hereby DIRECTED to determine, after due appropriate ceremonies on July 10, 1908, and the building
hearing, the precise portions of the land and the area was formally dedicated on October 20, 1909.
thereof which are leased to private persons, and to
compute the real property taxes due thereon as provided
for by law. The building is composed of three parts. The main
structure, located in the center, is three stories high and
includes a reception hall, social hall and game rooms,
lecture room, library, reading room and rooming
apartments. The small building lying to the left of the
principal structure, as one faces the front from Called
Concepcion, is the kitchen and servant's quarters. The
large wing to the right is known as the athletic building,
where the bowling alleys, swimming pool, locker rooms and
gymnasium-auditorium are located. The construction is of
reinforced concrete with steel trussed roof covered with
interlocking red tiles.
8
The main or central portion of the building is 150 by 45 feet public speaking, surveying, horticulture, tropical
and stands 20 meters back from the sidewalk. An iron dependencies, and the group of subjects required for
canopy, suspended by brackets, projects over the driveway entrance into the consular services, such as political
which lies in front and shelters the main entrance. A wide economy, American and modern history. Courses are also
arched doorway opens into a large reception room, on the offered in law, social, ethics, political economy and other
left of which is the public office and the secretary's private subjects.
office, while on the right is the reading and writing rooms,
and beyond that the library, each about 30 feet square. The institution has also its religious department. In that
From the reception room, on the left, a broad concrete department there are, generally speaking, three main lines
stairway leads to the second floor. of work — Bible study, religious meetings and special
classes. Course are offered in the Life of Christ and the Old
Passing out of the rear of the reception hall one enters Testament and in the larger social significance of the
upon a veranda some 15 feet in width running the full length teachings of Jesus. Meetings are held on Sunday
of the main structure which looks out on the tennis courts afternoons and several times during the week and courses
and affords an excellent place for lounging, games and are offered in the study of missions, in the method of
general social purposes. To the left of the entrance hall and teaching the Bible and kindred subjects.
also opening upon the veranda are two large rooms of
about the same size as those on the right of the reception The atmosphere of the Young Men's Christian Association
hall, the first being the billiard room and the other the is distinctly religious and there is constant effort on the part
restaurant. The athletic building is entered from the rear of the officials to create a religious spirit; and to that end
veranda. It is a two story wing 68 by 85 feet. Passing from there is continuous pressure to induce members to attend
the veranda into the athletic hall one finds first, on the left, not only the religious services of the association but also
the toilet room, and beyond this, to the rear, the shower those of one or another of the churches of Manila. While the
baths and locker rooms. The swimming pool is in the center association is nonsectarian, it is preeminently religious; and
of the athletic wing and is 60 by 19 feet in size, lined with the fundamental basis and groundwork is the Christian
cement. To the right of the swimming pool are the bowling religion. All of the officials of the association are devoted
alleys. A wide stairways leads to the second floor. Above Christians, members of a church, and have dedicated their
the swimming-pool and bowling alley is a large room 50 by lives to the spread of the Christian principles and building of
85 feet which is the gymnasium and also the auditorium Christian character.
when occasion requires. About one-third of the roof
converting the athletic wing is used as a roof garden.
The institution also has charitable features. It makes no
profit on any of its activities. The professors and instructors
The second and third floors of the main building are given in all departments serve without pay and freely give of their
over almost wholly to rooming apartments and baths. On time and ability to further the purposes of the institution.
the second floor over the entrance hall is a members' The chief secretary and his assistant receive no salary from
parlor, from which a small balcony projects over the main the institution. Whatever they are paid comes from the
entrance. The remainder of the second floor and all to the United States. In estimating the cost of instruction in the
third are composed of the living rooms. These apartments, various departments, or of the other things for which pay is
of which there are 14 on the second and 20 on the third received, no account is taken of the interest on the money
floor are approximately 18 by 14 feet each. They provide invested in the grounds and building, of deterioration in
accommodations for 64 men. value resulting from the lapse of time, or of the fact that the
professors and instructors and certain officials receive no
The purposes of the association, as set forth in its charter pay. We have, then, a building and grounds, professors and
and constitution, are: instructors, and certain institution officials, furnished free of
charge, and which makes no profit even on that basis. This,
To develop the Christian character and usefulness of its it would seem, would lend some color to the claim that the
members, to improve the spiritual, intellectual, social and association takes on some of the aspect of a charitable
physical condition of young men, and to acquire, hold, institution. While it appears that the association is not
mortgage, and dispose of the necessary lands, buildings exclusively religious or charitable or educational, it is
and personal property for the use of said corporation demonstrated that it is a happy combination of all three,
exclusively for religious, charitable and educational giving to its membership the religious opportunities of the
purposes, and not for investment or profit. church, the educational opportunities of the school and the
blessings of charity where needed without the recipient
feeling or even knowing that he is the object of charity.
The purposes of this association shall be exclusively
religious, charitable and educational, in developing the
Christian character and usefulness of its members and in It is claimed, however, that the institution is run as a
improving the spiritual, mental, social and physical condition business in that it keeps a lodging and boarding house. It
of young men. may be admitted that there are 64 persons occupying
rooms in the main building as lodgers or roomers and that
they take their meals at the restaurant below. These facts,
Speaking generally, the association claims exemption from
however, are far from constituting a business in ordinary
taxation on the ground that it is a religious, charitable and
acceptation of the word. In the first place, no profit is
educational institution combined. That it has an educational
realized by the association in any sense. In the second
department is not denied. It is undisputed that the aim of
place, it is undoubted, as it is undisputed, that the purpose
this department is to furnish, at much less than cost,
of the association is not, primarily, to obtain the money
instruction in subjects that will greatly increase the mental
which comes from the lodgers and boarders. The real
efficiency and wage-earning capacity of young men,
purpose is to keep the membership continually within the
prepare them in special lines of business and offer them
sphere of influence of the institution; and thereby to
special lines of study. Attention is given to subjects included
prevent, as far as possible, the opportunities which vice
in civil service and consular examinations both here and in
president to young men in foreign countries who lack home
the United States. The courses offer commercial subjects,
or other similar influences. We regard this feature of the
as well as many others, and include stenography and
institution not as a business or means of making money,
typewriting, bookkeeping, arithmetic, English composition,
but, rather, as a very efficient means of maintaining the
foreign languages, including elementary and advanced
influence of the institution over its membership. As we held
Spanish and Tagalog, special courses in Philippine history,
in the case of the Columbia Club, religious and moral
9
teachings do not always stop with the spoken word; but to
be effective in the highest degree they must follow the
young man through as many moments of his life as
possible. To this end the feature of the Young Men's
Christian Association to which objection is made lends itself
with great effect; and we are, accordingly, forced to regards
this activity of the institution not as a business but as a
method by which the institution maintains its influence and
conserves the benefits which its organization was designed
to confer.

As we have seen in the description already given of the

association building and grounds, no part is occupied for
any but institutional purposes. From end to end the building
and grounds are devoted exclusively to the purposes stated
in the constitution of the association. The library and
reading rooms, the game and lounging halls, the lecture
rooms, the auditorium, the baths, pools, devices for
physical development, and the grounds, are all dedicated
exclusively to the objects and purpose of the association —
the building of Christian character and the creation of moral
sentiment and fiber in men. It is the belief of the Young
Men's Christian Association that a Christian man, a man of
moral sentiment and firm moral fiber, is yet a better man for
being also all-round man — one who is sound not only
according to Christian principles and the highest moral
conceptions, but physically and mentally; whose body and
mind act in harmony and within the limits which the rights of
others set; who are gentleman in physical and mental
struggles, as well as in religious service; who have self-
respect and self-restraint; who can hit hard and still kindly;
who can lose without envy; who can congratulate his
conqueror with sincerity; who can vie without temper,
contend without malice, concede without regret; who can
win and still be generous, — in short, one who fights hard
but square. To the production of such men the association
lends all its efforts, husbands all its resources.

We are aware that there are many decisions holding that

institutions of this character are not exempt from taxation;
but, on investigation, we find that the majority of them are
based on statutes much narrower than the one under
consider and that in all probability the decisions would have
been otherwise if the court had been passing on a statute
similar to ours. On the other hand, there are many
decisions of the courts in the United States founded on
statutes like the Philippine statute which hold that
associations of this class are exempt from taxation. We
have examined all of the decisions, both for and against,
with care and deliberation, and we are convinced that the
weight of authority sustains the positions we take in this
case.

There is no doubt about the correctness of the contention

that an institution must devote itself exclusively to one or
the other of the purpose mentioned in the statute before it
can be exempt from taxation; but the statute does not say
that it must be devoted exclusively to any one of the
purposes therein mentioned. It may be a combination of two
or three or more of those purposes and still be entitled to
exempt. The Young Men's Christian Association of Manila
cannot be said to be an institution used exclusively for
religious purposes, or an institution used exclusively for
charitable purposes, or an institution devoted exclusively to
educational purposes; but we believe it can be truthfully
said that it is an institution used exclusively for all three
purposes, and that, as such, it is entitled to be exempted
from taxation.

The judgment appealed from is reversed and the cause

remanded with instructions to enter a judgment against
the city of Manila and in favor of the Young Men's
Christian Association of Manila in the sum of P6,221.35.
Without costs in this instance. So ordered.

10