BIR Ruling

December 5, 1972 Mr. Bernardo S. De Guzman Catarman, Northern Samar S i r : This refers to your letter dated September 29, 1972 requesting information as the legality of charging an additional amount by a theater owner aside from the admission fee of P1.00 considering that the said amount of P1.00 is indicated in the ticket; and, the corresponding violation, if any. In reply, I have the honor to inform you that the theater owner imposing additional charge on the admission fee without indicating the same on the ticket is violating the provisions of Section 260 of the Tax Code and Section 17 of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations. Such being the case, the additional amount charged shall be considered for purposes of computing the amusement tax prescribed by Section 260 of the Tax Code. For such violation, the theater owner shall be penalized under Section 352 of the Tax Code, by a fine of not more than P200.00 or by imprisonment of not more than six months, or both. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue