BIR Ruling

February 14, 1972 Golden Jubilee of Philippine Scouting Fund Campaign Headquarters 181 Concepcion St. Ermita, Manila Attention: Mrs . Araceli N . Betts Gentlemen : This refers to your letter dated February 9, 1972 requesting exemption from tax of your fund raising project to be undertaken as follows: The Quezon City Council had passed a resolution authorizing the theaters of Quezon City to add P0.05 to the regular admission prices earmarked for the Council. In effect, the issue is whether or not the P.05 additional charge shall be considered part of the admission price for purposes of the amusement tax. In reply, I have the honor to inform you that it is the opinion of this Office as it hereby holds that the P.05 addition to the admission price may be considered as donation to you by the moviegoers and not as part of the admission price provided that the fact of such donation are properly made known to the moviegoers by appropriate notices that may be posted in the theater's lobby. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue