BIR Ruling

June 28, 1966 The Mayor City of Davao S i r : This has reference to your letter dated December 7, 1965 requesting that the Federation of Barrio Councils of Davao City be exempt from the payment of amusement tax on admission fees or charges to be collected by the same in connection with its fund campaign. It appears that the fund campaign to be undertaken by the said Federation shall consist of boxing programs and other benefit shows. The proceeds that will be derived therefrom shall be used to buy filing cabinets, office tables, typewriters, electric fans and to defray telephone, lighting, subscription and other expenses for its maintenance. In reply thereto I have the honor to quote hereunder paragraph (i), Section 13 of Article III of Republic Act No. 3590, viz: "Sec. 13. Powers and duties of the barrio council . The barrio council shall have the following powers, duties and responsibilities: xxx xxx xxx "(i) To hold benefits in their respective barrios without having to secure permits from the SWA or the municipal mayor. The proceeds from such benefits shall be tax-exempt and shall accrue to the general fund:" It may be gleaned from the aforementioned provision of the law that proceeds from benefit shows held by barrio councils in their respective barrios are exempt from tax provided the proceeds thereof shall accrue to the barrio general fund. The Federation of the Barrio Councils of Davao is not a barrio council contemplated by the said law, and, therefore, the admission fees to such presentations shall be subject to the amusement tax prescribed in Section 260 of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue