Hospital told to pay P8.17M tax

The Court of Tax Appeals (CTA) has ordered Perpetual Succour Hospital of Cebu, Inc. (PSCHI) to pay P8.17 million for its deficient income tax for 2009.

The CTA’s Second Division upheld the ruling of the Commissioner of Internal Revenue, which held that Perpetual Soccuor is liable for deficiency income tax.

“The court observes that petitioner failed to present evidence to overcome respondent’s finding that the hospital is an institution ‘operated exclusively’ for charitable purpose,” read the CTA’s 31-page decision dated July 25.

The case stemmed from the petition filed by Hospital to the Sisters of St. Paul of Chartres, the congregation that operates Perpetual Soccour, against the Commissioner of Internal Revenue in October 2014.

The hospital sought to annul the final decision on disputed assessment (FDDA) dated Sept. 18, 2014, which found Perpetual Succour Hospital of Cebu, Inc. liable to pay deficiency income tax for the year 2009 totaling P15,534,467.

Perpetual Succour questioned the assessment for its deficiency income. It insisted that being a religious institution, it is nonstock, and non-profit. The hospital also said its exemption from income tax has been honored by the Bureau of Internal Revenue.

Sister Zeta Rivero, the hospital administrator, testified that no funds go to the pocket of SPC nuns because that would violate their vow of poverty. But the CTA’s final assessment showed the hospital is liable for deficiency income In the final assessment, the taxman found out the hospital earned P675,892,543 from patients in 2009.