BIR Ruling

July 22, 1968 The President Amateur Boxing Association of the Philippines (ABAP) P.O. Box 2272 Manila S i r : This refers to your letter dated July 12, 1968 requesting exemption from the payment of the amusement tax on the admission fees to the boxing bout which your association will promote at the Araneta Coliseum on August 3, 1968, the proceeds of which will be used to finance an 8-man boxing team to be sent to the Mexico Olympics. In reply, I have the honor to inform you that it appearing that the ABAP is a member of the Philippine Amateur Athletic Federation and since the promotion of the boxing bout is a fund-raising activity to assist finance and accomplish the purpose of its existence, your request is hereby granted pursuant to Section 14-2 in relation to Section 22, both of Republic Act No. 3135 which are quoted hereunder as follows: "Sec, 14. Functions, powers and duties of associations . The National Sports Association shall have the following functions, powers and duties: "1. . . . "2. To raise funds by donations, benefits, and other means for their purposes. xxx xxx xxx "Sec. 22. Exemption of income and properties from taxes . Any laws to the contrary notwithstanding, all income, properties, and importations of sports equipment and materials by the Philippine Amateur Athletic Federation and the members shall be exempt from amusement, real property, specific taxes and all other taxes and duties: Provided, however, That the sports equipment and materials imported herein shall be for the exclusive use of the federation, the association and their athletic members and not to be disposed of for commercial purposes or for profit." However, in order to be entitled to exemption, the following conditions and requirements must be met: 1. That the boxing exhibition must be actually undertaken by the beneficiary organization, or by another, for and in its behalf and exclusively for its benefit, not merely sponsored by it and not only the tax savings but the entire net proceeds should inure to the beneficiary; 2. The beneficiary shall file with the Revenue Director, Revenue Region No. 6, Quezon City, a report in triplicate within (10) days from the date of the exhibition is held, stating: (a) The number of tickets sold, classified according to the prices thereof, and showing the serial numbers thereof, the amusement tax return 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 proceeds. The said report should contain a certification by the President or responsible official of your organization showing that the receipts from the exhibition sought to be exempted has inured or will inure exclusively to its benefit. lexlib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue