BIR Ruling

June 23, 1970 Youth Reception Center Arroceros Street Manila Attention: Maria Luisa V . Bayani Acting Assistant to the Social Welfare Officer and Acting Superintendent Gentlemen : This refers to your letter dated April 24, 1970 requesting that the Manila Youth Reception Center be given a share of the amusement tax collected from the proceeds of the Filipino Film Festival. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. The amusement tax, being a national internal revenue in general, shall accrue to the National Government and shall be available for its general purposes. There is no existing law authorizing this Office to share with you the collection of amusement tax from the proceeds of the Filipino Film Festival. casia However, it appearing that the Manila Youth Reception Center of the Department of Social Welfare is a government entity and that its function is charity, the same may be exempted from the payment of amusement tax on proceeds from exhibitions undertaken by it. It is a fundamental principle that the government is exempt from' the burden of its own tax. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue