BIR Ruling [DA-103-97]

March 19, 1997 BIR RULING [DA-103-97] Hon. Frumencio A. Lagustan Assistant Executive Secretary Office of the President of the Philippines Malacaang, Manila S i r : This refers to your letter dated January 22, 1997 requesting for comment and recommendation on the enrolled H. No. 5492, entitled: cdpr "AN ACT AMENDING REPUBLIC ACT NUMBERED SIXTY-SIX HUNDRED THIRTY-ONE ENTITLED "AN ACT GRANTING MANILA JOCKEY CLUB, INC., A FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN A RACETRACK FOR HORSE RACING IN THE CITY OF MANILA OR IN THE PROVINCE OF BULACAN" AND EXTENDING THE SAID FRANCHISE BY TWENTY-FIVE YEARS FROM THE EXPIRATION OF THE TERM THEREOF." It is noted that the rate of documentary stamp tax imposed under Section 8 of the amendatory bill is the same rate of tax fixed under Section 190 of the Tax Code, as amended by Republic Act No. 7660. On the other hand, the amusement tax payable by proprietors, lessees or operators of racetracks is 30% pursuant to Section 123 of the Tax Code, as amended, which is a bit higher by 5% than the franchise tax prescribed under Section 9 of H.B. No. 5492. However, the provisions of Section 13 of the proposed bill pertaining to the tax on winning is essentially the same as Section 121 of the Tax Code, as amended. Accordingly, since the aforecited provisions of the amendatory bill are in accord with the provisions of the Tax Code, as amended, we are therefore not interposing any objection to its early passage. LexLib Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue