BIR Ruling [DA-312-97]

September 10, 1997 BIR RULING [DA-312-97] Angara Abello Concepcion Regala & Cruz ACCRA Building, 122 Gamboa St. Legaspi Village, Makati City Attention: Attys. Aleli Angela G. Quirino J. Alessandra G. Cochico and Angela C. Ylagan Gentlemen : This refers to your letter dated August 28, 1997 requesting on behalf of your client, PHILIPPINE BALLET THEATRE, INC. (PBT), for an exemption from tax on the proceeds of the PBT-organized auction. It is represented that the PBT is a non-stock, non-profit corporation organized for cultural purposes; that PBT is exempt from income tax on income received by it as such organization by virtue of an exemption letter dated February 24, 1989; that it will hold an auction-soiree entitled, "Dance of the Diamonds" to be held on September 19, 1997 at the Rizal Ballroom, Shangrila Hotel, Makati City; that the auction is being organized by Rustan Commercial Corporation which consists of jewellery donated by eight of the world's finest jewellery houses, namely, Cartier (France), Tiffany & Co. (U.S.), Bulgari (Italy), Philippine Charriol (Switzerland), Stefan Hafner (Italy), Charles Krypell (U.S.), Chopard (Switzerland), Quadrillion (U.S.) and from the Philippines, Rustan's Silver Vault, Fe S. Panlilio and De Beers; that the proceeds of the auction will form part of the "Endowment Fund" of the PBT; and that said fund will finance the scholarships and training of qualified but indigent and underprivileged Filipino artists. In reply, please be informed that the proceeds to be derived by PBT from the holding of the aforementioned auction-source are not subject to income and business taxes. Such income, however, should be declared in the annual information return to be filed by the tax-exempt organization, Philippine Ballet Theatre, Inc. (BIR Ruling No. 245-92 dated September 2, 1992) SHIETa This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, and/or any of the requirements imposed in this letter are not complied with, then this ruling shall be considered null and void. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV OIC, Asst. Commissioner Legal Service