American Bible Society v.
City of Manila [GR L-9637, 30 April 1957] Second Division, Felix (J): 7 concur, 1 concur in result Facts: In the course of its ministry, American Bible Societys Philippine agency has been distributing and selling bibles and/or gospel portions thereof (since 1898, but except during the Japanese occupation) throughout the Philippines and translating the same into several Philippine dialects. On 29 May 1953, the acting City Treasurer of the City of Manila informed the Society that it was conducting the business of general merchandise since November 1945, without providing itself with the necessary Mayors permit and municipal license, in violation of Ordinance 3000, as amended, and Ordinances 2529, 3028 and 3364, and required the Society to secure, within 3 days, the corresponding permit and license fees, together with compromise covering the period from the 4th quarter of 1945 to the 2nd quarter of 1953, in the total sum of P5,821.45. On 24 October 1953, the Society paid to the City Treasurer under protest the said permit and license fees, giving at the same time notice to the City Treasurer that suit would be taken in court to question the legality of the ordinances under which the said fees were being collected, which was done on the same date by filing the complaint that gave rise to this action. After hearing, the lower court dismissed the complaint for lack of merit. the Society appealed to the Court of Appeals, which in turn certified the case to the Supreme Court for the reason that the errors assigned involved only questions of law. Issue: Whether the Society is required to secure municipal permit to allow it to sell and distribute bibles and religious literature, and to pay taxes from the sales thereof. Held: No. Section 27 (e) of Commonwealth Act 466 (NIRC) exempts corporations or associations organized and operated exclusively for religious, charitable, or educational purposes, Provided however, That the income of whatever kind and character from any of its properties, real or personal, or from any activity conducted for profit,
regardless of the disposition made of such income, shall be liable to the tax imposed under the Code. Herein, the act of distributing and selling bibles, etc. is purely religious and cannot be made liable for taxes or fees therein. Further, Ordinance 2529, as amended, cannot be applied to the Society, for in doing so it would impair its free exercise and enjoyment of its religious profession and worship as well as its rights of dissemination of religious beliefs. The fact that the price of the bibles and other religious pamphlets are little higher than the actual cost of the same does not necessarily mean that it is already engaged in the business or occupation of selling said merchandise for profit. Furthermore, Ordinance 3000 of the City of Manila is of general application and it does not contain any provisions whatsoever prescribing religious censorship nor restraining the free exercise and enjoyment of any religious profession. The ordinance is not applicable to the Society, as its business, trade or occupation is not particularly mentioned in Section 3 of the Ordinance, and the record does not show that a permit is required therefor under existing laws and ordinances for the proper supervision and enforcement of their provisions governing the sanitation, security and welfare of the public and the health of the employees engaged in the business of the Society.
