COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. THE COURT OF APPEALS andEFREN P. CASTANEDA, respondents., .R. No. !"#$", O%to&er $', $!!$ISSUE ()et)erornot t)eter*ina+ +eavepa,o-a.overn*ent e*p+o,ee, aspart o-)isretire*ent&ene-its, &e s/&0e%t to ta1. Do%trineNo. As de%ided in t)e re%ent %ase o- 2es/s N. 3orro*eo vs. T)e Hon. Civi+ Servi%e Co**ission,et a+., .R. No. !"#45, 4$ 2/+, $!!$, %o**/tation o- +eave %redits, *ore %o**on+, 6no7n aster*ina+ +eave, is app+ied -or &, an o--i%er or e*p+o,ee 7)o retires, resi.ns or is separated -ro*t)e servi%e t)ro/.) no -a/+t o- )is o7n. In t)e e1er%ise o- so/nd personne+ po+i%,, t)eovern*ent en%o/ra.es /n/sed +eaves to &e a%%/*/+ated. T)e overn*ent re%o.ni8es t)at -or*ost p/&+i% servants, retire*ent pa, is a+7a,s +ess t)an .enero/s i- not *ea.er and s%ri*p,. A*odest nest e.. 7)i%) t)e senior %iti8en *a, +oo6 -or7ard to is t)/s avoided. Ter*ina+ +eavepa,*ents are.ivennot on+,at t)esa*eti*e&/t a+so-or t)esa*epo+i%,%onsiderations.overnin. retire*ent &ene-its.In -ine, not &ein. part o- t)e .ross sa+ar, or in%o*e o- a .overn*ent o--i%ia+ or e*p+o,ee &/t aretire*ent &ene-it as provided /nder Se%tion 45 3, ter*ina+ +eave pa, is not s/&0e%t to in%o*eta1.REPU3LIC OF THE PHILIPPINES, represented &, t)e PHILIPPINE RECLAMATIONAUTHORIT9 :PRA;,Petitioner,vs. CIT9 OFPARANAs/pre*a%,> o- t)e Nationa+ overn*ent over +o%a+.overn*ents.T)is Co/rt is %onvin%ed t)at PRA is not a OCC eit)er /nder Se%tion 5:4; o- t)e Introd/%tor,Provisions o- t)e Ad*inistrative Code or /nder Se%tion $", Arti%+e ?II o- t)e $!=' Constit/tion.T)e -a%ts, t)e eviden%e on re%ord and 0/rispr/den%e on t)e iss/e s/pport t)e position t)at PRA7as not or.ani8edeit)er as asto%6or anon@sto%6%orporation. Neit)er 7as it %reated&,Con.ress to operate %o**er%ia++,and %o*pete int)e private *ar6et. Instead, PRAis a.overn*ent instr/*enta+it,vested7it)%orporatepo7ersandper-or*in.anessentia+ p/&+i%servi%ep/rs/ant toSe%tion5:$#;o-t)eIntrod/%tor,Provisionso-t)e Ad*inistrativeCode.3ein. an in%orporated .overn*ent instr/*enta+it,, it is e1e*pt -ro* pa,*ent o- rea+ propert,ta1.T)/s se%tion 45 :3; :';:&; app+ies.PRA )asa%apita+ sto%6dividedintos)ares, it isnot a/t)ori8edtodistri&/tedividendsanda++ot*ent o- s/rp+/s and pro-its to its sto%6)o+ders. T)ere-ore, it *a, not &e %+assi-ied as a sto%6%orporation &e%a/se it +a%6s t)e se%ond reA/isite o- a sto%6 %orporation 7)i%) is t)e distri&/tiono- dividends and a++ot*ent o- s/rp+/s and pro-its to t)e sto%6)o+ders. A+so it *a, not &e %+assi-ied as a non@sto%6 %orporation &e%a/se it )as no *e*&ers and it is notor.ani8ed-or %)arita&+e, re+i.io/s, ed/%ationa+, pro-essiona+, %/+t/ra+, re%reationa+, -raterna+,+iterar,, s%ienti-i%, so%ia+, %ivi+ servi%e, or si*i+ar p/rposes, +i6e trade, ind/str,, a.ri%/+t/re and+i6e %)a*&ers as provided in Se%tion == o- t)e Corporation Code.PRA points o/t t)at it 7as not %reated to %o*pete in t)e *ar6et p+a%e as t)ere 7as no %o*petin.re%+a*ation %o*pan, operated &, t)e private se%tor. A+so, 7)i+e PRA is vested 7it) %orporatepo7ers /nder P.D. No. $#=B, s/%) %ir%/*stan%e does not *a6e it a %orporation &/t *ere+, anin%orporated instr/*enta+it, and t)at t)e *ere -a%t t)at an in%orporated instr/*enta+it, o- t)eNationa+ overn*ent )o+ds tit+e to rea+ propert, does not *a6e said instr/*enta+it, a OCC.Se%tion B=, C)apter $5, 3oo6 I o- t)e Ad*inistrative Code o- $!=' re%o.ni8es a s%enario 7)erea pie%e o- +ando7ned&,t)e Rep/&+i% is tit+edint)ena*e o- adepart*ent, a.en%,orinstr/*enta+it,.To %reate OCCs t)ro/.) spe%ia+ %)arters on t7o %onditionsC $; t)e OCC */st &e esta&+is)ed-or t)e %o**on .oodD and 5; t)e OCC */st *eet t)e test o- e%ono*i% via&i+it,. In t)is %ase,PRA *a, )ave passed t)e -irst %ondition o- %o**on .ood &/t -ai+ed t)e se%ond one @ e%ono*i%via&i+it,. Undo/&ted+,, t)e p/rpose &e)indt)e %reationo- PRA7as not -or e%ono*i% or%o**er%ia+ a%tivities. Neit)er 7as it %reated to %o*pete in t)e *ar6et p+a%e %onsiderin. t)att)ere 7ere no ot)er %o*petin. re%+a*ation %o*panies &ein. operated &, t)e private se%tor. As*entioned ear+ier, PRA 7as %reated essentia++, to per-or* a p/&+i% servi%e %onsiderin. t)at it7as pri*ari+, responsi&+e -or a %oordinated, e%ono*i%a+ and e--i%ient re%+a*ation,ad*inistration and operation o- +ands &e+on.in. to t)e .overn*ent 7it) t)e o&0e%t o-*a1i*i8in. t)eir /ti+i8ation and )astenin. t)eir deve+op*ent %onsistent 7it) t)e p/&+i% interest. COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. COURT OF APPEALS, COURT OF TA? APPEALSand 9OUNMENESCHRISTIANASSOCIATION OF THE PHILIPPINES, INC., respondents. .R. No. $5B#B4, O%to&er $B, $!!=Iss/e()et)er or not t)e renta+ in%o*e -ro* ta1@e1e*pt %orporation ta1a&+e.Do%trineRenta+ in%o*ederived&,ata1@e1e*pt or.ani8ation-ro*t)e+easeo-itsproperties, rea+ orpersona+, is not e1e*pt -ro* in%o*e ta1ation, even i- s/%) in%o*e is e1%+/sive+, /sed -or t)ea%%o*p+is)*ent o- its o&0e%tives.In%o*e o- 7)atever 6ind and %)ara%ter o- non@sto%6 non@pro-it or.ani8ations -ro* an, o- t)eirproperties, rea+ or persona+, or -ro* an, o- t)eir a%tivities %ond/%ted -or pro-it, re.ard+ess o- t)edisposition *ade o- s/%) in%o*e, s)a++ &e s/&0e%t to t)e ta1 i*posed /nder t)e NIRC.Ver&a+e.isnonest re%edend/*. T)e+a7doesnot *a6eadistin%tion. T)erenta+ in%o*eista1a&+e re.ard+ess o- 7)en%e s/%) in%o*e is derived and )o7 it is /sed or disposed o-. ()eret)e +a7 does not distin./is), neit)er s)o/+d 7e.For t)e 9MCA to &e .ranted t)e e1e*ption it %+ai*s /nder t)e a&ove provision, it */st prove7it) s/&stantia+ eviden%e t)at :$; it -a++s /nder t)e %+assi-i%ation non@sto%6, non@pro-ited/%ationa+ instit/tionD and :5; t)e in%o*e it see6s to &e e1e*pted -ro* ta1ation is /sed a%t/a++,,dire%t+,, and e1%+/sive+, -or ed/%ationa+ p/rposes. Un-ort/nate+, -or respondent, t)e Co/rt notedt)at not a s%inti++a o- eviden%e 7as s/&*itted to prove t)at it *et t)e said reA/isites. Reference :Mamalateo, V. C. (2010), Exclusions from Gross Income and Exemt Cororations, !"iliine Income #ax, (. 1$%&1$$). 1'(( CM Recto )*enue, Manila, !"iliines : Rex +oo,storeReference :Recalde, E. R. (201-, Gross Income, ) #reatise on !"iliine Internal Re*enue #axes, (. .-1&.-2). 1'(( CM Recto )*enue, Manila, !"iliines : Rex +oo,storeReference :Mamalateo, V. C. (2010), Exclusions from Gross Income and Exemt Cororations, !"iliine Income #ax, (. 1(.). 1'(( CM Recto )*enue, Manila, !"iliines : Rex +oo,store/a0"il.net, cdasiaonline.com