A) Can the government tax its own agencies or instrumentalities? Explain.

The government can tax its own agencies or instrumentalities since there is no
constitutional prohibition that would not allow the government to tax itself. The
general rule is that, if the government is performing governmental or sovereign
functions, tax-exempt (exception is taxable by law). On the other hand, the
government agencies performing proprietary functions are taxable (the exception is,
tax-exempt by law).

B) Can the government revoke the real property and income tax exemptions
enjoyed by non-stock, non-profit educational institutions and religious
organizations? Explain your answer. 

Based on the constitution, all revenues generated as well as the assets of non-stock, non-profit
educational institutions and religious organizations which are used actually, directly, and exclusively
(ADE) for educational, religious, and charitable purposes would be exempted from taxation. It is
important to take note that exclusively is synonymous with “solely” (not primarily). If the parcel of land
of a particular religious group or the revenues of a non-stock, non-profit institution are NOT used
actually, directly, and exclusively for the aforementioned purposes, the government can revoke the real
property and income tax exemptions.