BIR Ruling

July 27, 1970 Kiwanis Club of Quezon City 121-A Quezon Blvd. Extension Quezon, City Attention: Dr . Homobono B . Calleja President Gentlemen : This is with reference to your letter dated April 8, 1970 requesting exemption from the payment of amusement tax on the admission fees to the benefit Boxing '70 which was held at the Quezon City Football Stadium at Don Alejandro Roces Avenue on May 2, 1970. In reply, please be informed that although the proceeds from the said exhibition will be used for a laudable purpose, your request cannot be granted for lack of legal basis. Under Section 261 of the Tax Code, the 50% exemption from the amusement taxes imposed in Section 260 of the same Code, as amended by Republic Act No. 6110, is granted only to duly registered charitable institutions or associations. Since there is no showing that the club is such an association, it is subject to the payment of the amusement tax on the admission fees to the aforesaid benefit boxing bout. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue