BIR Ruling

March 24, 1969 The National Chairman 1969 Red Cross Fund Drive Philippine National Red Cross P.O. Box 280, Manila M a d a m : In reply to your letter dated March 18, 1969, I have the honor to inform you that the Philippine National Red Cross, being a public corporation created to "assist the Republic of the Philippines in discharging the obligations set forth in the Geneva Red Cross Convention and to perform such other duties as are incumbent upon the National Red Cross Society" and "a charitable organization operated as an agency of the Republic of the Philippines", does not fall within the scope of Republic Act No. 104. (Opinion No. 42, S. of 1949, Sec. of Justice). In other words, being a government agency performing governmental functions, the Philippine National Red Cross may be entitled to 100% exemption from the amusement tax imposed by Section 260 of the Tax Code on the admission fees to the benefit showing of the film, "Shoes of the Fisherman" which it will sponsor at the Forum Theater starting April 4, 1969 and up to the entire showing of said film. However, in order to be entitled to exemption, the following conditions and requirements must be met: 1. That the show or exhibition is actually undertaken by the beneficiary organization, or by another, for and in its behalf and exclusively for its benefit; 2. That the beneficiary organization shall file with the Revenue Director, Revenue Region No. 7, North Manila, a report in triplicate within twenty (20) days from the last date the show or exhibition is held, stating (a) The number of tickets sold, classified according to the prices thereof and showing the serial numbers thereof, the form used in connection with the payment of the amusement tax shall be used for this purpose; and (b) The gross receipts or income derived from the show or exhibition, the expenses incurred in connection therewith, and the resulting net income. The said report should contain a certification by the president or responsible official of the beneficiary organization that the income from the show or exhibition sought to be exempted has inured or will inure exclusively to its benefit. casia Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue