BIR Ruling

May 14, 1969 Mrs. Mariquit J. Lopez National Chairman 1969 Fund Campaign Philippine National Red Cross M a d a m : In reply to your letter dated April 26, 1969, I have the honor to inform you that the Philippine National Red Cross, Iloilo Chapter, 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, series of 1949, Secretary of Justice) In other words, being a government agency performing governmental functions, the Philippine National Red Cross, Iloilo Chapter, may be entitled to 100% exemption from the amusement tax imposed by Section 260 of the Tax Code on the admission fees to be movie benefit show "Vietnam: The Longest War" which it is sponsoring at the Galaxy Theater starting May 8, 1969 and up to the entire showing of the said film. cdtech 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 Director, BIR 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; and 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. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue