BIR Ruling

June 21, 1973 Mr. Carlos P. Banares City Mayor Bacolod City S i r : This refers to your letter dated April 6, 1973, in your capacity as Chairman, 1973 City Fund Campaign of the Philippine National Red Cross, Bacolod Chapter, requesting permission to allow you to impose an additional ten (P0.10) centavos overprice in admission tickets for cinemahouses in Bacolod City for the aforesaid Red Cross Fund Drive. In reply, I have the honor to inform you that this Office interposes no objection to your request. In such case, the overprice to the admission price is considered as donation to the Philippine National Red Cross by the purchasers of the admission tickets and not as part of the admission price for purposes of the amusement tax. However, this is subject to the condition that the fact of such donation is properly made known to purchasers of the tickets or to movie-goers by appropriate notices to be posted in the premises of the theater's lobby. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue