BIR Ruling

March 24, 1969 Agent 098-T Camp Aguinaldo Quezon City S i r : This refers to your letter dated March 14, 1969, requesting information on the following: aisadc "1. How valid is stub ticket No. 83403? Are these stub tickets taxed by the BIR? "2. These "Karera Tips" sold for 25 centavos to the public, do they pay a certain tax to the BIR? "3. Dividendazo programs are sold for 20 centavos. In the sale sanctioned by the BIR? And do they pay taxes also? "4. What crimes or violations are committed by the operators in this case?" For purposes of the aforesaid inquiries, you submitted the following: 1. One ticket stub No. 83403, which bookies sell as low as P0.50 2. One "Tipsters to Guide You", Karera Tips, which sells for P0.25 3. One "Dividendazo Program" which sells for P0.20. In reply, I have the honor to inform you that if ticket No. 83403 is recorded or registered in the racetrack's office before the start of the races, it is valid like stub ticket No. 99202 (daily double ticket). Stub tickets like ticket No. 83403, are not subject to tax. The persons engaged in printing and publishing these so called "Karera Tips" sold for P0.25 and the "Dividendazo Programs" sold for P0.20, are considered printers within the purview of Section 191 of the Tax Code, and as such they are subject to the fixed and percentage taxes imposed by Sections 182(A)(1) and 191 of the said Code. Apparently, under the foregoing representations, there is no crime or violation of existing laws and regulations being committed by the persons holding the races or the owners of racetracks. Lastly, stub tickets, like daily double ticket No. 99202, sold by the Manila Jockey Club for P1.00, are not required to be stamped and registered prior to the use thereof for internal revenue purposes. Such tickets are not subject to any kind of tax. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue