BIR Ruling

July 2, 1968 Mr. Fortunato de Leon Attorney-at-Law Suite 206 Madrigal Bldg. Escolta, Manila S i r : This refers to your letter dated May 17, 1968 requesting information as to what various taxes under existing laws must an operator of a Jail-Alai fronton and the Pelotaris have to pay the Government. In reply, I have the honor to inform you that a jai-alai fronton can be operated only by authority of a legislative franchise, hence, in the absence of such legislative franchise, this Office cannot ascertain the tax liabilities of prospective operators of jai-alai frontons. Under Section 260-A of the Tax Code, the operator, manager, or person in charge of the jai-alai is constituted a withholding agent of this Office. Thus, he is required to pay a tax equivalent to 2 1/2% of the winnings, such amount to be withheld and deducted by him from the actual amount paid to winners after deducting the cost of the winning tickets, and within ten days from the date the tax was deducted and withheld, file a true and correct return and pay within the same period the total amount of tax so deducted and withheld. Moreover, if the owner or proprietor of the jai-alai charges admission fees from persons who desire to witness and bet on the games, such owner or proprietor shall be subject to the amusement tax prescribed in Section 260 of the Tax Code. With regards to pelotaris, they are subject to an annual fixed tax of fifty pesos pursuant to Section 182(B) of the Tax Code, the residence taxes (A & B) and income tax. atdc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue