BIR Ruling [DA-211-02]

November 15, 2002 BIR RULING [DA-211-02] R.A. 6847; Sec. 34(H) The Philippine Sports Commission Rizal Memorial Sports Complex Pablo Ocampo Sr. Street Malate, Manila Attention: Albert Visitacion Head, PR & Marketing Division Office of the Chairman Gentlemen : This refers to your letter dated October 29, 2002, stating that the Philippine Sports Commission (PSC) is now implementing various national grassroots programs and activities nationwide aimed at further promoting the government's policy of Sports for All and advancing the total direction of local sports; that aware of the fact that promoting local sports is a very expensive endeavor, PSC is currently spearheading a full-blast campaign to entice the full participation of the private sector thru fund-raising, donations and sports schemes; and that to implement this approach, PSC will tap private individuals and corporations and other entities for funding support and assistance. THaAEC Based on the foregoing, you are requesting for a certificate of tax exemption to the effect that contributions and donations to the PSC shall be exempt from the donor's tax and shall be deductible in full in the computation of the taxable income of the donor, pursuant to Section 20 of Republic Act (RA) No. 6847 otherwise known as the "AN ACT CREATING AND ESTABLISHING THE PHILIPPINE SPORTS COMMISSION, DEFINING ITS POWERS, FUNCTIONS AND RESPONSIBILITIES, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES." which provides, viz: "Section 20. Tax Deduction or Exemption of Donations and Contributions. All donations and contributions to the Commission in connection with its fund-raising projects and its continuing sports development program shall be exempt from the donor's taxes, and shall be deductible in full in the computation of the taxable net income of the donor. Donations and contributions to the Philippine Olympic Committee and/or the various national sports associations certified by the Commission to be pursuant to the development of sports in the country shall likewise be exempt from the payment of the donor's and estate taxes and shall be deductible in full in computing the taxable net income of the donor." In reply, please be informed that the aforequoted provisions of RA No. 6847, which took effect in 1990, clearly exempts from the donor's tax all donations and contributions to the PSC in connection with its fund-raising projects and its continuing sports development program, and for the deductibility of said donations and contributions for income tax purposes. As far as this Office is concerned, the said provision of law has not been amended and/or repealed by the Tax Code of 1997. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be ascertained that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal & Inspection Group