BIR Ruling

February 2, 1973 Messrs. Valera, Reyes & Associates 22 Tirad Pass, Sta. Mesa Heights Quezon City Gentlemen : This refers to Your letter dated February 1, 1973 relative to the implementation of the collection of the documentary stamp tax on horse race tickets prescribed by new section 226-A of the Tax Code, as amended by Presidential Decree No. 69. cdta You request for and in behalf of your client, Manila Jockey Club, Inc., the following procedure of payment, viz.: "a) That instead of a summary of races for each racing day, a monthly, summary in triplicate of the races held during the month shall be prepared, which shall contain the amount of gross sales for each racing day and the corresponding amount of documentary and science stamp tax due thereon duly certified by the Club's responsible official and submitted within TWENTY (20) days to the Bureau of Internal Revenue which shall properly indicate the date of its receipt of said summary on all the three (3) copies and return the triplicate thereof to the Club; "b) That based on the said summary, the amount corresponding to the documentary stamp and science stamps tax due on the total sales for the month shall be remitted simultaneously with the submission of the summary by the Club to your Bureau which shall thereupon issue an official receipt in the amount equivalent to the value of the said documentary stamps and also another official receipt in the amount equivalent to the value or the said science stamps; "c) That the said official receipts issued by your Bureau, which are the equivalent of the stamps involved as just mentioned, shall be affixed by the Club to the triplicate copy of the summary bearing the stamped date of the receipt as stated in item a) above," You interposed as justification, for your request the following: "1) To facilitate easier checking or verification on the part of your Bureau; "2) To avoid the possibility of unused stamps getting lost; "3) To avoid the concomitant problem of affixing, cancelling and perforating these stamps; "4) To avoid the possibility of affixed stamps getting detached from the summary and consequently lost; and 5) To do away, not only with the trouble, but also the risk of buying many stamps." In reply, I have the honor to inform you that your proposition is acceptable to this Office, and, therefore, payment of the tax should be made in accordance therewith. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue