Taxation, 2011 Bar — Question 24

MULTIPLE CHOICE

What is the rule on the taxability of income that a government educational institution derives from its school operations? Such income is (A) subject to 10% tax on its net taxable income as if it is a proprietary educational institution. (B) Exempt from income taxation if it is actually, directly, and exclusively used for educational purposes. (C) subject to the ordinary income tax rates with respect to incomes derived from educational activities. (D) Exempt from income taxation in the same manner as government-owned and controlled corporations.

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