Lung Center of the Phil. Vs.

Quezon City
G.R. No. 144104, June 29, 2004

FACTS:
Petitioner is a non-stock, non-profit entity established by virtue of PD No. 1823, seeks exemption from real
property taxes when the City Assessor issued Tax Declarations for the land and the hospital building. Petitioner
predicted on its claim that it is a charitable institution. The request was denied, and a petition hereafter filed
before the Local Board of Assessment Appeals of Quezon City (QC-LBAA) for reversal of the resolution of the City
Assessor. Petitioner alleged that as a charitable institution, is exempted from real property taxes under Sec 28(3)
Art VI of the Constitution. QC-LBAA dismissed the petition and the decision was likewise affirmed on appeal by the
Central Board of Assessment Appeals of Quezon City. The Court of Appeals affirmed the judgment of the CBAA.

ISSUE:
Whether or not petitioner is a charitable institution within the context of PD 1823 and the 1973 and 1987
Constitution and Section 234(b) of RA 7160.

RULING:
Yes. The Court hold that the petitioner is a charitable institution within the context of the 1973 and 1987
Constitution. Under PD 1823, the petitioner is a non-profit and non-stock corporation which, subject to the
provisions of the decree, is to be administered by the Office of the President with the Ministry of Health and the
Ministry of Human Settlements. The purpose for which it was created was to render medical services to the public
in general including those who are poor and also the rich, and become a subject of charity. Under PD 1823,
petitioner is entitled to receive donations, even if the gift or donation is in the form of subsidies granted by the
government.