BIR Ruling

August 14, 1970 The Business Assistants 17 Dagohoy Street Tagbilaran City Attention: Mr . Rogelio L . Hontanosas Gentlemen : This is with reference to your letter dated May 12, 1970 requesting opinion on whether a certain civic organization who sponsored an invitational basketball game with the sole purpose of meeting the substantial monetary requests of the local Philippine Red Cross and TB Pavilion, is subject to amusement taxes on the gate receipts, pursuant to Section 260 of the National Internal Revenue Code, as amended. In reply thereto, I have the honor to inform you that although the proceeds from said exhibition was used for a laudable purpose, the civic club which sponsored the same is still subject to the amusement tax, since there is no showing that the club is a duly registered charitable institution or association. 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. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue