BIR Ruling

May 7, 1973 Basketball Association of the Philippines Office of the Regional Director Eastern Visayas Cebu City Attention: Mr . Eustacio Ch . Veloso BAP Regional Director This refers to your letter dated February 26, 1973 to the Regional Director, Revenue Region No. 13, Cebu City, which was referred to this Office for appropriate action on your request for exemption from the payment of the amusement tax on the basketball exhibition games which were supposed to have been sponsored and held by your Association (BAP) an affiliate of the Philippine Amateur Athletic Federation (PAAF) last March 3 and 4, 1973, at Cebu City, for the benefit of the Associated Workers Welfare Foundation, Inc., specifically for the construction of their charity clinic. acd Under Section 22 of Republic Act No. 3135, the income of the Philippine Amateur Athletic Federation and its members are exempt from the amusement taxes. In the instant case, since the exhibition was not undertaken for the benefit of BAP, the proceeds of the exhibition cannot be considered as income of BAP. Consequently, said proceeds is not exempt from amusement tax under Republic Act No. 3135. Moreover, Section 261 of the Tax Code granting 50% amusement tax exemptions on admission fees collected by or for and in behalf of a duly registered charitable institution has already been repealed by Presidential Decree No. 69. Accordingly, the fact that the exhibition is for the benefit of the Associated Workers Welfare Foundation, Inc. is not a valid ground to claim even a partial exemption. In view thereof, your claim for amusement tax exemption of the Basketball Association of the Philippines is hereby denied. Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue