In the case of Abra Valley College vs Aquino (G.R. No.

L-39086), the petitioner, an educational

corporation and institution of higher learning duly incorporated ;with the Securities and Exchange
Comission in 1948, filed a complaint to annual and declare void the “Notice of Seizure” and the “Notice
of Sale” of its lot and building located at Bangued, Abra, for non-payment of real estate ,taxes and
penalties amounting to P5,140.31. Said “Motice of Seizure” by respondents Municipal Treasure and
Provincial Treasurer, defendants below, was issued for the satisfaction of the said taxes thereon. The
court ruled in this case that Section 22, paragraph 3, Artivle VI of then 1935 Philippine Constitution,
expressly grants exemption from realty taxes for cemeteries, churches and parsonages or convents
appurtenant thereto, and all lands, buildings and improvements used exclusively for religious, charitable
or educational purposes. However, the lease of the first floor thereof to the Northern Marketing
Corporation cannot by any stretch of the imagination be considered incidental to the purpose of
education. The test of exemption from taxation is the use of the property for purposes mentioned in the
Constitution.
On the other hand, the case of CIR vs DSLU  G.R. 196596 Nov. 9 2016, In 2004, the Bureau of
Internal Revenue (BIR) issued a letter authorizing it’s revenue officers to examine the book of accounts
of and records for the year 2003 De La Salle University (DLSU) and later on issued a demand letter to
demand payment of tax deficiencies. DLSU protested the assessment arguing that as a non-stock, non-
profit educational institution, it is exempt from paying taxes according to Article XIV, Section 4 (3) of the
Constitution (All revenues and assets of non-stock, non-profit educational institutions used actually,
directly, and exclusively for educational purposes shall be exempt from taxes and duties). The court ruled
in this case that DSLU is exempted from the payment of taxes. Article XIV, Section 4 (3) of the 1987
Constitutions states that:
(3) All revenues and assets of non-stock, non-profit educational institutions used actually,
directly, and exclusively for educational purposes shall be exempt .from taxes and duties. Upon the
dissolution or cessation of the corporate existence of such institutions, their assets shall be disposed of in
the manner provided by law.
The last paragraph of Section 30 of the Tax Code without force and effect for being contrary to
the Constitution insofar as it subjects to tax the income and revenues of non-stock, non-profit educational
institutions used actually, directly and exclusively for educational purpose. The court make this
declaration in the exercise of and consistent with their duty to uphold the primacy of the Constitution.