BIR Ruling

May 16, 1972 Mrs. Loreto Paras Sulit Secretary General Philippine National Red Cross P. O. Box 280 Manila M a d a m : This refers to your letter dated May 4, 1972 stating that the Philippine National Red Cross will be host to delegates from 10 countries from the Asian and Pan Pacific Region as well as observers from international organizations to attend the Disaster Preparedness and Relief Assistance Institute being sponsored by the PNRC; that the delegates and observers will be accommodated at the Bayview Hotel; and that the PNRC foots the bills of the delegates and observers. Under the foregoing circumstances, you are requesting the waiver of the taxes incident to the use of hotel rooms and facilities. In reply, I have the honor to inform you that your request cannot be granted for lack of legal basis. The 3% and 7% taxes levied on the gross receipts from the sale of food and drinks served to the delegates and observes in accordance with Section 191-A of the Tax Code, and the 3% tax on hotel receipts prescribed in Section 191 of the same Code, are taxes directly payable by the hotel operator and not on the PNRC which incidentally foots the bills of the delegates and observers to the institute. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue