BAPCU (Bicol Association of Private Colleges and Universities)
June 4, 2021
Dear Mr. President,
AN URGENT PLEA FOR INTERVENTION Petition by 600 Private Education Stakeholders to Correct the Damaging, Discriminatory and Illegal Provision in BIR Revenue Regulation 5-2021
On behalf of the Coordinating Council for Private Educational Associations (COCOPEA), Davao Colleges and Universities Network Inc. (DACUN), Association of Private, State Colleges, Universities in Region XI (APSCUR XI), and hundreds of educational, parent, alumni and employee associations from around the country, we respectfully seek your help in correcting the errors in the BIR’s Revenue Regulation RR 5-2021, which directly contradicts the provisions and the spirit of both the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) and the Constitution.
Whereas CREATE, Congress and your Administration sought to shore up proprietary educational institutions during the pandemic with a much-appreciated temporary reduction in the tax rate from 10% to 1%, RR 5–2021 will instead cause irreparable damage to the institutions that you sought to help, by more than doubling their tax rate by 150%, from the 10% that has been applied to them since 1968, to 25%.
Simply put, RR 5-2021 will severely harm the schools, parents, students, teachers, employees and, other stakeholders in the private education sector, which is a large and vital partner of the government in providing quality education nationwide. Currently, there are over 6.1 million students enrolled in almost 15,000 private educational institutions across the country, based on CHED and DepEd data. The current faculty and staff of the private educational institutions total over 400,000.
The erroneous provision of RR 5-2021 will add a heavy additional burden to the many stakeholders of the private education sector, at a time when we are already fighting for our survival. Our sector has not yet recovered from the debilitating effects of the K- 12 Law, and is in the midst of struggling with the steep drop in enrollment caused by the pandemic. RR 5-2021 will be the straw that breaks the camel’s back.
Many individuals will be directly affected by RR 5-2021, such as our academic, athletic, working student and needs-based scholars, and our faculty and staff. Members of the communities built around schools, such as school uniform sewers, cafeteria workers, carinderias, sari-sari stores, dormitories, janitorial/security 1
BAPCU (Bicol Association of Private Colleges and Universities) services, school bus drivers/helpers, bookstores, book suppliers, and informal businesses around the campuses, will also be severely affected.
In the last five years, your Administration has mounted many initiatives that have made education more accessible and affordable by strengthening the complementary roles of the public and private education sectors in an integrated education system.
The enactment of your landmark and widely hailed Universal Access to Quality Tertiary Education Act (RA 10931), the Tulong Dunong Program, and the educational assistance programs under the Bayanihan 2 such as the Bayanihan 2 for Higher Education Tulong Program (B2HELP), the CHED-DOLE Tabang OFW Program, and the GSIS and Landbank Educational Loan Programs, have all contributed significantly to making private education accessible to students, especially the underprivileged.
Mr. President, we thank your wholeheartedly, for all your efforts to help the poor. You have truly earned your place as a staunch champion of education by providing access to quality education for deserving students who cannot afford it.
However, the benefits of your legacy could very well be canceled by RR 5-2021. We appeal to you, Mr. President, to make our tax laws consistent with your vision and the constitutional mandate of ensuring access to education for all Filipinos. Specifically, RR 5-2021 unilaterally and illegally inserted wording inconsistent with both Section 27 (B) of the Tax Code as amended by CREATE, and the Constitution.
We appeal for your intervention because we have exhausted all other administrative avenues by requesting various government offices, including the Bureau of Internal Revenue and the Department of Finance, to revisit and reverse those provisions of RR 5-2021, to no avail. This will cause irreparable harm to the private education sector and its many stakeholders.
We come to you Mr. President as the final arbiter for administrative remedy and the ultimate protector of our many stakeholders. We know how much you value education and its key role in alleviating poverty alleviation.
We hope and pray that you can correct this egregious injustice.
2
BAPCU (Bicol Association of Private Colleges and Universities)
Below are the signatures of 600 private education stakeholder groups who are petitioning you to consider our urgent appeal, which is detailed in the enclosed statement of COCOPEA (please see Annex 1 below), the umbrella organization of 5 leading private education associations, with over 2,500 educational institutions as members.
Respectfully,
Maraming Salamat Po!
Very truly yours,
3
BAPCU (Bicol Association of Private Colleges and Universities)
4
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Region: Name of School/PTA/Faculty Republic Central Colleges
Club Angeles City 1 LORMA Colleges
City of San Fernando Proverbsville School, Inc.
Angeles City Northwestern University
Laoag City Baliuag University
Baliwag Rowel Advincula Crisostomo
Malasiqui Mapua University
Bocaue Metro Dagupan Colleges
Mangaldan College for Research & Region: Technology of Cabanatuan 2 UPHS Isabela Cabanatuan
Cauayan City
College of the Immaculate
Mallig Plains Colleges Inc. Conception Cabanatuan City Mallig
CAPRISAA -CABANATUAN Mallig Plains Colleges Inc. PRIVATE SCH. ADM. ASSOC Mallig Cabanatuan Nueva Ecija
Mallig Plains Colleges Inc. Camiling Catholic School, Inc.
Mallig Camiling
Mallig Plains Colleges Inc. BC ACHIEVERS INTEGRATED Mallig SCHOOL INC
General Tinio
University of Cagayan Valley
Tuguegarao City St. Peter of Verona Academy Inc. Region: Hermosa 3 Regina Barbara Children's Inst.
Aliaga New Life In Christ Academy Inc.
Licab Regina Barbara Children's Institute, Inc. Aliaga Mapua University
Manila
Regina Barbara Children's Institute, Inc., Aliaga Mapua University
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Manila
San Sebastián Cathedral School
Auxillary Academy of Tarlac Inc. Tarlac Meycauayan
Mapúa University St. Michael Academy of Tarlac City Meycauayan, Inc. Meycauayan
Brian Harvey A Villanueva
Nampicuan Christian Academy Tarlac City
Nampicuan
Genova Technological Institute,
Subic Bay Colleges (SBCI), Inc. Inc. Libmanan Olongapo City Region: 5 LA CONSOLACION COLLEGE Academia De Pulilan Inc. Baao Pulilan
Don Gregorio O. Balatan University of Nueva Institute Caceres/Parents Teachers Balatan Council San Fernando
La Consolacion College Baao,Inc. Mary Nymph Montessori School Baoo San Fernando
PASACAO ACADEMY,INC. Central Luzon College of Basacao Science and Technology San fernando
Mataas na Paaralan ng Pagatpatan STI College San Jose Bato San Jose City
Ocampo Academy Admin & Management Technological Institute, Inc. San Jose del Monte Bato
Bethel Educational Center BUHI LYCEUM, INC.
SDUMC Inc. Buhi Sto. Domingo
Bula Parochial School Royal Heir Christian Academy Bula Talavera
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Faculty and Employees of
Our Lady of La Porteria Mabini Colleges Union Daet Academy Calabanga
MABINI COLLEGES GENETAL
Dominican School of Calabanga ALUMNI ASSOIAOON Daet Calabanga
Mabini Colleges, Inc. DOMINICAN SCHOOL OF Daet CALABANGA Calabanga
ALFELOR SR. MEMORIAL
Parents Council COLLEGE Del Gallego Calabanga
Instituto De Caceres - Goa Inc. SUNNY SMILES MONTESSORI Goa INC Calabanga
La Consolacion College Iriga
SPJ International Technology and Baao Iriga City Institute,Inc Calabanga
University of Northeastern
Nuestra Senora dela Salud Philippines Iriga City Family Rural School inc Calabanga
Ezer Christian School of
Light and Life Montessori School Libmanan Inc. Libmanan of Learning Inc. Calabanga
Colegio dela Virgen del Pilar
Kurtland Grade School, Inc. (CVP), Inc. Lupi Canaman
Colegio dela Virgen del Pilar AERONAUTICAL ACADEMY (CVP), Inc OF THE PHILIPPINES (AAP), Lupi INC. Canaman
Prince Thad Montessori School, Inc. United high school, Inc. Magarao Caramoan
Prince Thad Montessori School, Inc.
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Magarao
University of Nueva Caceres
Bermudez center for arts and Federation of Faculty Clubs Naga City technology, Inc Minalabac
University of Nueva
KING THOMAS LEARNING Caceres/Federation of Faculty Clubs ACADEMY, INC. N/A Naga City
Carmen Dapilos KING THOMAS LEARNING ACADEMY, INC. Naga City
N/A
University of Nueva Caceres St. Jude Thaddeus Learning General Alumni Association Center. Inc Naga City
Nabua
Felix Alfelor Sr. Foundation EZER FOUNDATION SCHOOL College OF NABUA Not a City
Nabua
Felix Alfelor Sr. Foundation FACULTY CLUB Collee
Naga Not a City
SSMI Felix Alfelor Sr. Foundation College Naga Not a City
Fortunate Rays Learning Center Little Blessings Learning Center, Naga Inc. Ocampo
Carbeth Victory Academy
Naga PHILIPPINE COMPUTER
FOUNDATION COLLEGE, INC. Pili Partido College, Inc.
Naga Mama Mary Learning Center Inc. UNC SHS PTA Pili
Naga
QUEEN ROYAL MONTESSORI University of Nueva Caceres SCHOOL Naga City Pili
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
CAMARINES SUR
QUEEN ROYAL MONTESSORI INTERNATIONAL SCHOOL, INC. SCHOOL Pili Sipocot
Serranz Learning Center Inc. Philippine Computer Foundation College Inc. Sipocot
Pili
NAZARETH INSTITUTE OF GRS SDA MULTIGRADE LEARNING AND FORMATION SCHOOL,INC. Sipocot
Ragay
Southern Tagalog Rural High Port Junction Adventist School Elementary School Sta. Elena
Ragay
Siena College Tigaon
Mother Immaculate And Infant Tigaon Jesus Learning Center Inc. Region: Ragay 6 STI West Negros University
Bacolod Catalotoan SDA Multigrade School Sagnay Southland College of
Kabankalan City, Inc. Ilog Sunrise Institute of Learning, Inc. San Fernando University of Iloilo
Iloilo City
MAMPIRAO GRACE GOSPEL LEARNING CENTER Southland College of San Jose Kabankalan City Inc. Kabankalan City
Globaltech Programs for Progress (GPPI), Inc. Mapua University
San Jose Manila
King Thomas Learning Academy UPHSPdP Faculty Club Sipocot Association Roxas City
CHRISTIAN MISSION SERVICE PHILIPPINES INC University Alumni Association Sipocot Roxas City
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Region: COLLEGE OF 7 CIT University TECHNOLOGICAL SCIENCES - CEBU Cebu City Cebu City
University of Cebu Cebu Institute of Technology- Cebu City University/Junior High School PTA
University of the Visayas Cebu City
Cebu City
CEBU INSTITUTE OF TECHNOLOGY -UNIVERSITY Cebu Institute of Technology- ALUMNI ASSOCIATION University/Elementary Cebu City Department Cebu City
BIT INTERNATIONAL COLLEGE JAGNA Cebu Institute of Technology - Jagna University Cebu City
SAINT TERESA ACADEMY INC. CEBU INSTITUTE OF Loon TECHNOLOGY - UNIVERSITY Cebu City
Bohol College of Science and Technology, Inv. MAIN Campus CITU SHS PTA Municipality of Sagbayan Cebu City
Blessed Trinity College-AR of CIT University-JHS Department Talibon, Bohol Cebu City Tagbilaran
CIT University College Faculty University of Bohol
Club Tagbilaran City Cebu City
Saint Teresa Academy, Inc. CEBU INSTITUTE OF Tagbilaran City TECHNOLOGY -UNIVERSITY
ALUMNI ASSOCIATION Cebu City Saint Teresa Academy
Loon
CIT-U
Cebu City HAYDE LEYNES CORONEL
Tubigon, Bohol
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Icthus Christian Academy Philippine Women's College Ubay, Bohol of Davao Faculty Club Davao City
Bless Sandae Dolorzo Philippine Women's College Tagbilaran City of Davao- Faculty Club Davao City
Region
8 MERRYHILLS ACADEMY OF Dodjie Maestrecampo SOGOD Davao City Sogod
Region UM Panabo College 9 CBBA-TABINA ,ZAMBOANGA, Panabo DEL SUR Pagadian
Region UM Tagum College, Tagum 10 ILIGAN MEDICAL CENTER City Davao del Norte Tagum COLLEGE Iligan City
UM Bansalan College,
ILIGAN CAPITOL COLLEGE Bansalan Davao del Sur Bansalan Iligan City
UM Guianga College- Davao Mountain View College City Valencia City Guianga
Region University of Mindanao UM Ilang-Tibungco College- 11 Davao City Davao City Tibungco
PWC of Davao UM Digos College- Digos City, Davao City Davao del Sur Digos
Cor Jesu College Davao PWC of Davao Elementary and Junior High School Faculty
Club Asian International school of Davao Aeronautics and Technology
Davao Philippine Women's College
of Davao-SHS Unit Davao Central College, Inc. Davao Davao City
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
PWC NTP CLUB
Davao The Pleasant Mount School
Antipolo
PWC Parents Teachers'
Association St. Clare Montessori School & Sto.tomas St. Clare Science High School Antipolo
South Philippines Adventist
College- Matanao, Davao del First Crayons Learning Center Sur Antipolo City Matanao
University of Perpetual Help - Joji Ilagan College of Molino Campus Business and Tourism-Davao Bacoor City Davao University of Perpetual Help System Dalta-Molino Campus Institute of International Bacoor Culinary and Entrepreneurship- Davao City Davao UPHSD MOLINO CAMPUS / JBHS PTAB Bacoor Mt. Apo Science Foundation College- Davao City Davao Mapua University
Bacoor
Region University of Perpetual Help 12 Central Mindanao Colleges System Dalta Molino Alumni Kidapawan city Association 2019-2021 Bacoor
Central Mindanao Colleges
Kidapawan City Waynesville Learning Center
Inc. Bacoor Central Mindanao Colleges
Kidapawan City Citiville Christian Academy, Inc.
Bacoor Marbel School of Science and Technology, Inc. Koronadal THERESIAN SCHOOL OF
CAVITE, INC. Bacoor 4A Awci de le mar
Amadeo
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
University of Perpetual Help
System DALTA-Molino Lipa Archdiocesan Catholic Bacoor Schools Association Lidicsa Batangas
Cavite school of st mark
Bacoor Saint Joseph College of Rosario
Batangas Inc Batangas GREEN VALLEY ACADEMY INC. Bacoor University of Batangas
Batangas City
UPHSD PTAB
Bacoor University of Perpetual Help Dr
Jose G Tamayo Medical University APEC Schools - Bacoor Biñan Bacoor
University of Perpetual Help University of Perpetual Help System Laguna System Dalta Binan City Bacoor
Binangonan Garden of Learners University of Perpetual Help Binangonan System Dalta - Molino Campus Bacoor City
Anthony Hilmer Medrano
Newville Heights Academy Cabuyao
Bacoor City
Arise and Shine Academy
Cabuyao St. Alphonsus Liguori Integrated School
Bacoor City Faculty Association of Mapua
Cainta
University of Batangas Alumni Association, Inc. Cainta Catholic Colkege Batangas Cainta
Oblates of Saint Joseph Schools Twin Stars School of Calamba, Batangas Inc. Calamba
Taysan High School and Child Development Center Immaculate Conceotion Catholic Batangas School - Calamba
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Calamba Immaculate Conception Catholic
School Calamba Calamba Cambridge School
Calamba UPH Calamba Campus Faculty Club Immaculate Conception Catholic Calamba City
Schiol - Calamba Calamba University of Perpetual Help System DALTA Calamba University of Perpetual Help Calamba city
System DALTA Calamba UPH Calamba Campus College Faculty Club President Asian Computer College Calamba City
Calamba
Cambridge School, Inc.
Active Community Contributors Calamba City
Institute Calamba Faculty Club
Calamba City Casa Del Niño Montessori School Ciudad de Calamba, Inc. Calamba Family Tabernacle of Jesus
Christ (FTJCA) Christian Academy Good Samaritan Mary School Calamba City Calamba
South Greenville School Calamba Adventist Elementary Calauan School Calamba
LUZONIAN CENTER OF EXCELLENCE FOR SCIENCE Children of God Learning AND TECHNOLOGY (LCEST) Academy Inc. INC. Calamba Calauan
Immaculate Conception Catholic The Refiner's Christian School- School RCS 1999 Inc Calamba Calauan
University of Perpetual Help The Refiner's Christian School System-Dalta Calamba Calauan
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
The Refiner's Christian School- Our Lady in Pink and Blue RCS 1999 INC. School Inc Calauan City of Santa Rosa
The Refiner's Christian School PNTC Colleges
Calauan Dasmariñas
The Refiner's Christian School Mt. Carmel School of Cavite
Calauan Dasmariñas
Luzonian Center of Excellence Christ the king College of Cavite for Science and Technology Foundation, Inc. Caluan Dasmariñas
Luzonian Center of Excellence APEC Schools - Dasmariñas
for Science and Technology Dasmariñas
(LCEST) Inc. Caluan Mapua University
Dasmarinas Headstart Christian Learning Institute Inc. Candelaria Salawag Merryhills School of
Dasmariñas Dasmarinas Headstart Christian Learning Institute, Inc. Candelaria University of Perpetual Help
System GMA Campus General Mariano Alvarez University of Perpetual Help- Molino College Faculty Club Cavite Ibaan Saint James Academy
Ibaan
University of Perpetual
HelpMolino College Faculty Club Mapúa University Cavite Imus
The Valley Cathedral Academy, UNIVERSITY OF PERPETUAL Inc. HELP SYSTEM DALTA, Cavite MOLINO CAMPUS. Junior Business High School Parents Malayan Colleges Laguna and Teachers Association Board
City of Cabuyao Imus City
Juanito R. Gatus
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Indang, Cavite Stonyhurst Southville
International School,Inc Lipa City LICEO DE LILIW
Liliw Hondagua Port High School
Lopez University of Batangas Lipa City
Lipa Lalaguna Rural Academy
Lopez Lipa Montessori School of Learning, Inc. Lipa Liceo De Los Baños
Los Banos
Lipa Montessori School of
Learning, Inc. Liceo De Los Baños Lipa Los Banos
Lipa Montessori School of JOY IN LEARNING SCHOOL Learning, Inc. INCORPORATED Lipa Los Banos
Lipa Montessori School of Hasik Bagong Buhay Christian Learning, Inc. School Inc. Lipa Los Banos
Lipa Montessori School of Los Banos Adventist Elementary Learning, Inc. School Lipa Los Banos
Lipa Montessori School of Liceo De Los Bańos Learning, Inc. Lipa Los Bańos
Colegio de Los Baños Lipa Montessori School of Learning, Inc. Los Baños
Lipa
Colegio de Los Baños
APEC Schools - Lipa Los Baños
Lipa
Christian School International
Balete Family Farm School, Inc. Los Baños
Lipa City
Joy In Learning School, Inc.
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Los Baños
Magnum Opus Formation
Joy In Learning School, Inc. School, Incorporated Padre Garcia Los Baños
Holy Family Academy of Padre Joy in Learning School, Inc. Garcia, Batangas Inc. Los Baños Padre Garcia
Banahaw Technological College, South Greenville School, Inc Inc. Pila Lucban
Little Lamb Educational School MLILC of San Francisco, (LLESSF)Inc. Lucena City Quezon
LAGUNA PROVINCE PRIVATE Little Lamb Educational School SCHOOLS AND of San Francisco, (LLESSF) Inc. ADMINISTRATORS Quezon
ASSOCIATION(LAPPRISADA) Luisiana APEC Schools - Taytay
Rizal LAGUNA PROVINCE PRIVATE SCHOOLS AND ADMINISTRATORS Padre Vicente Garcia Memorial ASSOCIATION(LAPPRISADA)S Academy, Inc. Luisiana Rosario
Mabini College of Batangas, Inc SAINT JOSEPH ACADEMY OF Mabini SAN JOSE BATANGAS INC. San Jose
LICEO DE MAJAYJAY
Majayjay hope zoel young minds builder inc San Pablo
Tomas Claudio colleges
Morong hope zoel young minds builder inc San Pablo Little Lamb Educational School of San Francisco, (LLESSF) Inc.
N/A Bright Shiners Elem School
San Pablo
Western Colleges Inc.
Naic
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Hope Zoel Young Minds Builder
Inc. Joseph And Mary Academy San Pablo San Pedro
Hope Zoel Young Minds Builder Joseph And Mary Academy Inc. San Pablo San Pedro
Scuola Dei Bambini di Sta Sisters of Mary Immaculate School Teresita Montessori Inc. San pablo San Pedro
Scuola dei Bambini di Sta. Casa Del Niño Montessori & Science High School Teresita San Pablo San Pedro
San Lorenzo School Scuola dei Bambini di Sta. Teresita Montessori Inc.. San Pedro
San Pablo
San Lorenzo School
Scuola dei Bambini di Sta. San Pedro
Teresita, IMI San Pablo Franceville academy inc
Silang APEC Schools - San Pablo
San Pablo South Greenville School
Sta Cruz, Laguna Laguna College
San Pablo City New Sinai School and Colleges Sta Rosa Inc. hkpe zoel young minds builder Sta Rosa
inc San Pablo City St. Therese Martin of Lisieux School and Business High Hope Zoel Young Minds Builder School Inc Parents Association Sta. Cruz San Pablo City
St. Therese Martin of Lisieux San Pablo Christian School School and Business High San Pablo City School
Sta. Cruz
San Pablo Colleges
San Pablo City
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
St. Therese Martin of Lisieux
School and Business High DMMC INSTITUTE OF HEALTH School SCIENCES Sta. Cruz Tanauan
Saint Therese of Martin of MLILC PARENT TEACHER Lisieux School and Business FELLOWSHIP (PTF) High School Tayabas Sta. Cruz
Metro Lucena Integrated St. Therese Martin of Lisieux Learning Center Faculty School and Business Tayabas
HighSchool Sta. Cruz SAN ROQUE PAROCHIAL SCHOOL Child Formation Center of Sta. Tayabas
Rosa, Inc. Sta. Rosa San Roque Parochial school
Tayabas Mapua University
Sta. Rosa City San Roque Parochial School.Inc. St Judiel Learning Center Tayabas
Sta. Rosa City
San Roque Parochial School SAINT THERESE MARTIN OF Inc. LISIEUX SCHOOL AND Tayabas City
BUSINESS HIGH SCHOOLS Sta.Cruz San Roque Parochial School Inc. Laguna BelAir Science School Tayabas City
Sta.Rosa
San Roque Parochial School SAINT FRANCIS OF ASSISI Inc. Faculty Club Tayabas City COLLEGE OF SANTA ROSA, INC.
Sta.Rosa San Roque Parochial School Inc. Kainos Learning Institute Inc. Tayabas City
Sta.Rosa
San Roque Parochial School
Blessed Christian School de Sta. Inc. Tayabas City Rosa, Inc. Sta.Rosa
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
San Roque Parochial School Inc NCR Mapua university
Tayabas city Antipolo
San Roque Parochial School Mapua University
Inc. Binan Tayabas City
Mapúa University Lord's Jewels Christian Schoo, Bulacan Inc. Taytay
APEC Schools - Grace Park West Saint Thomas Becket Academy/ Caloocan DCPAPSPA Trece Martires City
National Teachers College
Caloocan University of Perpetual Help Dalta- Calamba Campus
Calamba Faculty Association of Mapúa Institute of Technology City of Manila BARMM Notre Dame University Junior High School
Cotabato City Faculty Association of Mapúa Institute of Technology CAR University of Baguio City of Manila
Baguio City
Mapua University
Pines City Colleges Intramuros
Baguio City
Las Pinas Montessori School
4A MLIlcC-Tayabas Las Pinas
Tayabas
UPHSD
Las Pinas Christ the King School of Cabuyao
Cabuyao AMA Basic Education Las Pinas
Las Pinas
Malayan Colleges Laguna
Cabuyao APEC Schools - Las Pinas
Las Pinas
Dodjie Maestrecampo
Cabuyao Divine Light Academy, Las Piñas City
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Las Piñas Bethany School of Las Piñas,
Inc. Las Piñas UPHSD SHS PTAB
Las Piñas Bethany School of Las Piñas, Inc. AMA BASIC EDUCATION OF Las Piñas
LASPINAS Las Piñas Asian Association of School HRMD Practitioners, Inc. Achievers Mind Home of (AASHPI) Learning Inc. Las Piñas Las Piñas
South SEED-LPDH College Yellow Bell Childcare and Las Piñas Development Center Las Piñas
University of Perpetual Help System DALTA - Las Pinas Blessed Name of Jesus Las Pinas City Learning School Las Piñas
Jonelta Foundation School of Medicine UPHSD ALUMNI Las Pinas City ASSOCIATION Las Piñas
Elizabeth Seton School
BF Homes School, Inc. Las Pinas City
Las Piñas
PTAB JHS
Las Piñas City ANGEL OF THE HOLY SPIRIT ACADEMY
Las Piñas Mapua University
Makati
DON CARLO CAVINA SCHOOL
Las Piñas Mapua University
Makati
Sunshine Learning Center of Las Piñas, Inc. MAPUA UNIVERSITY Las Piñas Makati
BEST CHILD Learning Center of Mapua University Las Pinas Las Piñas Makati
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Mapua University Manila
Makati
Mapua University
Mapua University - ETYSBM Manila
Makati City
Mapua University
Mapúa University Manila
Malabon
FAMIT
Mapua University Manila
Manila
FAMIT/FAMU
University of the East Manila
Manila
Mapua University
Far Eastern University Manila
Manila
Mapúa University
Mapua University Manila
Manila
FAMIT
National Teachers College Manila
Manila
Mapua University
Mapua University Manila
Manila
Mapua University
National Teachers College Manila
Manila
Mapua University
MAPUA University Manila
Manila
Mapua University
Mapua university Manila
Manila
FaMIT
Mapúa University Manila
Manila
Mapua University
Mapua University Manila
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Mapua University/ FAMIT MAPUA UNIVERSITY
Manila Manila
Mapua University Mapua University
Manila Manila
Mapua University Mapua University
Manila Manila
Mapua University Mapua University
Manila Manila
Mapua University Mapua University
Manila Manila
Mapua University Lyceum of the Philippines
Manila University Manila
Mapua University Mapua University Manila Manila
Mapua University Mapua University Manila Manila
Faculty Association of Mapua Mapua University Institute of Technology Manila Manila
Malayan High School of Science Mapua University
Manila Manila
MALAYAN HIGH SCHOOL OF Mapua University
SCIENCE FACULTY Manila MANILA
Mapua University Mapua University Manila Manila
Faculty Association of Mapua MAPUA UNIVERSITY University Manila Manila
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Mapua University
MAPUA University Manila
Manila
Mapua University
Mapua University Manila
Manila
Mapua University
MAPUA UNIVERSITY Manila
Manila
Department of Arts and Letters
Mapua University Manila
Manila
Mapua University
Mapua University Manila
Manila
Mapua University
Mapua University Manila
Manila
Mapúa University
Mapua University Manila
Manila
Faculty Association of Mapua
Mapua University University (FAMIT) Manila Manila
Mapua University FAMU Manila Manila
Mapua University Mapua University Manila Manila
Mapúa University MAPUA UNIVERSITY Manila Manila
Mapua University Mapua University Manila Manila
Mapua University FAMIT Manila Manila
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Mapua University Mapúa University
Manila Manila
Mapua University Mapua University
Manila Manila
Faculty Association of Mapua Mapua University
University (FAMIT) Manila Manila
Mapua University MAPUA UNIVERSITY Manila Manila
Malayan Parents Council Faculty Association of Mapua Manila University (FAMIT) Manila
Malayan Parents Council
FAMIT Manila
Manila
Mapúa University
Mapua Unuversity Manila
Manila
Faculty Association of Mapua Institute of Technology Mapua University Manila Manila
Mapúa University Mapua University Manila Manila
Mapua University Mapua University Manila Manila
FAMIT FAMIT Manila Manila
Faculty Association of Mapua Mapua University Institute of Technology Manila Manila
Mapua University Mapua University
Manila Manila
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
MAPUA UNIVERSITY Manila
Manila
Mapua university faculty club
Mapua University Manila
Manila
Mapua University
Mapua University Manila
Manila
Mapua University
Mapua Univ. Manila
Manila
Mapua University
Faculty Association of Mapua Manila
Institute of Tech Manila FAMIT
Manila Faculty Association of Mapua Institute of Technology (FAMIT) Manila NTCAA
Manila
Mapua
Manila National Teachers College
Manila
Faculty Association of Mapua University Ma. Elena Parayno
Manila Manila
Mapua University National Teachers College
Manila Manila
Perpetual Help College of NATIONAL TEACHERS Manila COLLEGE Manila Manila
FAMIT National Teachers College
Manila Manila
Mapua University National Teachers College
Manila Manila
FAMIT National Teachers College
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Manila Manila
Mapua University Saint Jude Catholic School
Manila Manila
National Teachers College Faculty Association of Mapua
Manila University Manila
National Teachers College Mapua University Manila Manila
National Teachers College - Mapua University CPTA Manila Manila
Mapúa University National Teachers College High
Manila School Parent Teachers
Association Manila mapua university
Manila Mapua University
Manila National Teachers College
Manila Mapúa University
Manila Mapua University
Manila Mapúa University
Manila City Florinda Barquilla
Manila FAMIT
Manila City Don Bosco School(Salesian Sisters),Inc. Manila Michael Nayat Young
Manila,
National Teachers College
Manila APEC Schools - Calumpang
Marikina
NTC-Student Government
Manila APEC Schools - Concepcion
Dos Marikina Mapua University
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
IMMACULATE HEART OF
APEC Schools - Marikina MARY COLLEGE Paranaque Heights Marikina
Immaculate Heart of Mary
Mapua University College-Paranaque Paranaque Metro Manila
University of Asia and the Pacific Faculty Association of Mapua Pasig University Metro Manila
Mapua University
Mapua University - School of Pateros
EECE Metro Manila APEC Schools - Pateros
Pateros Southernside Montessori School
Muntinlupa MAPUA UNVERSITY
Quezon City Jumila Montaño
Muntinlupa Mapua University
Quezon City San Beda College Alabang
Muntinlupa Mapua University
Quezon City APEC Schools - Muntinlupa
Muntinlupa Faculty Association of Mapua University (FAMIT) Richard Lozada Quezon City
Muntinlupa City
Mapua University
Faculty Association of Mapua Quezon City
University Paranaque National Teachers College
Quezon City Lydia Paola Go Marave
Paranaque Angels of Peace Academy Foundation Inc. FAMIT Quezon City
Paranaque
APEC Schools - New Manila
600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021
Quezon City Charis Christian School of
Val.,Inc. Valenzuela APEC Schools - North Fairview
Quezon City Alejandro Basco Soriano
Valenzuela APEC Schools - V. Luna
Quezon City UPHSD FACULTY CLUB
Las Piñas National Teachers College
Quiapo Mapua University
Manila APEC Schools - Ortigas Extension Rizal Faculty Association of Mapua
Manila
APEC Schools - Roxas
Boulevard Mapua University / Math Roxas Boulevard Department Manila
APEC Schools - Sta. Rita
Sta. Rita Immaculate Heart of Mary
College-Paranaque
Faculty Club, Department of Arts and Letters (DAL) & Faculty Saint Teresa Academy, Inc. Association of Mapua University Manila (FAMIT) Taguig City Immaculate Heart of Mary College-Pasig MAPUA UNIVERSITY
Taguig City
APEC Schools - Taytay
Taytay
APEC Schools - Tondo
Tondo
International Linkages for Research and Development Valenzuela
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COCOPEA Statement, June 1, 2021
STATEMENT ON DAMAGING, DISCRIMINATORY AND ILLEGAL PROVISION IN BUREAU OF INTERNAL REVENUE REVENUE REGULATION 5-2021
The Coordinating Council of Private Educational Associations, in solidarity with all private educational institutions and education stakeholders throughout the country, calls for the immediate rectification of Revenue Regulation 5-2021 (“RR 5-2021”), a tax regulation issued by the Bureau of Internal Revenue.
Whereas the recently enacted Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (the “CREATE Act”) sought to shore up proprietary educational institutions during the pandemic with a much appreciated temporary reduction in the tax rate from 10% to 1%, RR 5–2021 will instead cause irreparable damage to the institutions and stakeholders that the Duterte Administration and Congress sought to help, by more than doubling their tax rate from the 10% that has been applied to them since 1968, to 25%.
RR 5-2021’s Grave Impact on the Education Sector
The imposition of RR 5-2021, especially during this deep economic recession, will penalize, marginalize and discriminate against proprietary educational institutions with unfeasibly higher taxes that may force financially distressed schools to close down and trigger a radiating wave of economic disruption that will hit not just teachers and school personnel, but also the extensive network of linked small and medium businesses and livelihood activities of the host communities.
Whereas corporations nationwide will see their tax rate reduced as a result of CREATE, it is only proprietary educational institutions that have been singled out by RR 5-2021 for a devastating increase in tax rates, despite the key role that they play in tackling the ongoing learning crisis that will impact our country’s ability to generate jobs for decades to come, and despite the severe financial stress they are undergoing as a result of the pandemic - induced plunge in enrollment.
The unintended consequence of RR 5-2021 is to impose a very heavy burden on the private education sector at a time when schools are already struggling to survive as a result of first, the K- to-12 Act, and now the pandemic. The immediate impact will be seen in a sharp reduction of investments in classroom capacity and scholarships. The longer-term impact of RR 5-2021 would be that faculty and personnel are at greater risk of losing their jobs, and even the communities and small businesses built around schools (e.g., dormitories, janitorial and security services, uniform sewers, carinderias, sari - sari stores and school bus services) will be significantly affected.
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RR 5-2021 would cause severe damage to the schools, parents, students, employees and numerous other stakeholders in the private education sector, which is a large and vital partner of the government in providing quality education nationwide. Currently, there over 6.1 million students enrolled in 4,125 private educational institutions across the country, as per CHED and DepEd data. The current faculty and staff in the basic education units of the private educational institutions number over 300 thousand, while in higher education, the total number is approximately 100 thousand.
RR 5-2021 is ill-conceived and insensitive to the realities of the private education sector
In the aftermath of the economic impact of the pandemic on the families of learners, it would be almost impossible for many in the private education sector to recover without some government assistance.
Since the start of the pandemic, almost 900 private basic education schools have closed, and several private higher education institutions have suspended operations. The Department of Education reported last March 1, 2021 that enrollment in private K-12 schools dropped by over 900,000 learners versus the prior school year.
In higher education, a survey conducted by the Philippine Association of Colleges and Universities (PACU) in April 2021 indicates that over 50% of respondents experienced a decline in enrollment of 10 to 50+ % in SY 2020-21 versus the prior year. Over a million students, faculty and school personnel in private schools have been impacted by the pandemic to date.
The temporary relief intended by the CREATE Act should have encouraged increased participation of the private sector in the delivery of education, easing the government’s costs in building more schools and classrooms, and in the hiring and training of more teachers in the public school system.
However, the benefits of the monumental passage of the CREATE Act and its objective of supporting the private education sector are now in grave danger of being entirely reversed by the BIR under RR 5-2021.
It is our sincere belief that this is not the spirit or the intention of the CREATE Act. The BIR’s arbitrary move to enforce a 15% increase in the tax rate during this deep recession is ill- conceived and insensitive to the realities of the education sector.
RR 5-2021 is Grossly Inconsistent with the CREATE Act
RR 5-2021 directly contradicts the recently enacted Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) which grants a temporary reduction of the concessionary income tax rate of proprietary educational institutions from 10% to 1% for the next three years. We highly commend this responsive act of legislators and the President to help alleviate struggling private schools from the health and economic crisis under the pandemic.
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However, we strongly protest the BIR’s unilateral insertion of a condition that proprietary educational institutions must be "non-profit" to enjoy the reduced rate. Otherwise, they are subject to the regular corporate rate of 25%. If implemented, this effectively cancels out the 1% rate under the CREATE Act, as proprietary educational institutions by direct implication would now be subject to the regular corporate rate of 25%.
Specifically, RR 5-2021 unilaterally inserted the word “non-profit schools” in the definition of “proprietary schools”. This modifier “non-profit schools” is NOT found in the definition of proprietary schools in Section 27 (B) of the Tax Code. The condition for proprietary educational institutions to be "non-profit", aside from being a legal impossibility, was also not provided for by the CREATE Act.
The 9-point tax reduction in the income tax due from proprietary educational institutions under the CREATE Act was expected to be the lifeline extended by the government to economically affected schools, which extends to their students in the form of scholarships, loans, reduced fees, and to their personnel through salaries, benefits, and other forms of assistance, at this time of severe crisis.
The spirit of the CREATE Act as envisioned by Congress and the Duterte Administration should not be allowed to be set aside by the BIR RR 5-2021. What the BIR cannot do directly, it cannot do indirectly. RR 5-2021, as an administrative issuance, cannot amend a law passed by Congress.
Constitutional Infirmities of RR 5-2021
Our Constitution is unequivocal: “the State recognizes the complementary roles of public and private institutions in the educational system and shall exercise reasonable supervision and regulation of all educational institutions.”
The unprecedented move under RR 5-2021 clearly suffers from serious Constitutional infirmities. Under Art. XIV, Sec. 4(3), of the Constitution:
(a) “All revenues and assets of non-stock, non-profit educational institutions ... shall be exempt from taxes and duties.”
(b) “Proprietary educational institutions … may likewise be entitled to such exemptions, subject to the limitations provided by law, including restrictions on dividends and provisions for reinvestment.”
As can be clearly deduced from the language above, the reference to proprietary educational institutions is a reference to for-profit educational institutions which are organized as stock corporations as the Constitution allows “restrictions on dividends and provisions for reinvestment” as part of the limitations for the grant to them of preferential tax treatment.
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Contrary to the clear mandates of both the Constitution and the CREATE Law, RR 5-2021 limits the application of the preferential tax treatment to proprietary educational institutions that are “non-profit.” Instead of implementing the preferential tax treatment of proprietary or stock educational institutions under the Constitution and the Tax Code, RR 5-2021 is denying them preferential tax treatment.
Uphold the Pro Education Spirit of the CREATE ACT and the Constitution
We have exhausted all official means to bring this matter to the attention of the Department of Finance and the Bureau of Internal Revenue, yet our appeals to correct this matter of urgent public concern remain unresolved.
We therefore make this public appeal on behalf of the whole private education sector, in the hopes of a favorable intervention from our policymakers in the Executive Branch, to spare the education sector and its many stakeholders from the devastating effects of RR 5-2021.
We therefore call on our tax authorities to exercise their taxing power with fairness and equity, and in accordance with both the CREATE Act and the Constitution, by immediately rectifying the erroneous insertion in RR 5-2021.
ATTY. JOSEPH NOEL M. ESTRADA Managing Director For the Coordinating Council of Private Educational Associations June 1, 2021
### Contact Details: Atty. Joseph Noel Estrada [email protected] +639998817412
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