BIR Ruling

May 4, 1973 Atty. Melchor G. Diaz Diaz Law Office 2nd Floor, Garcia Bldg. No. 2 Bonifacio St., Tagum, Davao S i r : This refers to your letter dated February 26, 1973, requesting clarification as to whether Filipinas Theater located in Tagum, Davao and operated by your client, Mr. Antonio Lagunsad is considered a first run theater for internal revenue tax purposes. It is represented that the Filipinas Theater being relatively old and dilapidated is made only of G. I. Sheet roofings, sawali ceilings, wooden walls, cemented flooring on the orchestra and wooden benches both in the orchestra and balcony with a second hand projector and less than ten ceiling electric fans for ventilation; that the films being shown are foreign and local films which are oftentimes five (5) to ten (10) years old already; that while it is true that these foreign and local films are shown for the first time in Tagum at the Filipinas Theater these films were already extensively shown and exhibited in Luzon and the Visayas not to mention the fact that they were shown and exhibited in Davao City which is approximately fifty-five (55) kilometers from Tagum. In reply, I have the honor to inform you that under the foregoing circumstances, Filipinas Theater may only be considered as a second run theater for purposes of the fixed annual tax prescribed in Section 182(A)(3)(hh) of the Tax Code. Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue