Proprietors or Operators of Amusement Places are Required to Keep Journals and Ledgers; When Simplified Sets of Bookkeeping Records may be Used

May 6, 1975 BIR RULING NO. 003-75 Proprietors or operators of amusement places, such as cockpits, bowling alleys and billiard halls are required to keep journals and ledgers; but if their gross receipts do not exceed P5,000.00, they may use only simplified sets of bookkeeping records . This refers to your letter dated January 30, 1975 requesting clarification in the implementation of the provisions of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations, particularly on the following: "First On amusement places such as cockpits, bowling alleys and billiard halls, it has been observed that betting slips on which the percentage shared from the betting are computed, in the case of cockpits; the score sheets, in the case of bowling alleys, on which payments are based as shown by the number of games played; and the game slips, in the case of billiard halls, which indicate the number of games played upon which the fees are based, are the only proof of the sources of receipts or income of these amusement places, yet, because it has been argued that they do not form part of the accounting records of the owners or proprietors thereof, these records are not serially numbered and are not required to be registered. As observed, these records obviously are the only documents supporting the receipts or income declared from these sources, and so, must they not be required to be registered and be made to form part of the bookkeeping records of the taxpayer? "Second Upon the promulgation and effectivity of the Local Tax Code, the collection and payments of amusements taxes have been transferred to the local governments. By reason of this authority, proprietors and operators of amusement places, more specifically movie theaters or show places, have relaxed if not completely deferred compliance with the requirements of Revenue Regulations No. V-1 Section 17 and the Revenue Regulations No. V-57 (Revised Amusement Tax Regulations), more particularly on the registration and keeping of admission tickets. It is to be noted that these tickets are the actual source of proof of receipts or income and to relieve these operators of these requirements will render null the enforcements of related tax obligations. For purposes of tax administration and enforcement regarding this particular kind of tax, this Office now seeks a ruling whether operations of these places are still covered by these mentioned regulations?" cdta In reply, you are advised as follows: Proprietors or operators of amusement places such as cockpits, bowling alleys and billiard halls are required to keep journals and ledgers, or their equivalents. However, if their gross receipts do not exceed P5,000.00, they may use simplified sets of bookkeeping records only. They may at their option, keep such subsidiary books as the needs of their business may require: Provided, That where such subsidiaries are kept, they shall form part of the accounting system of the taxpayer and shall be subject to the same rules and regulations as to their keeping, translation, production, and inspection as are applicable to the journal and the ledger. (See Section 335 of the Tax Code) Considering that the betting slips in the case of cockpits, score sheets in the case of bowling alleys, and game slips in the case of billiard halls, are required in the business of the operators of the said amusement places, then they are considered as receipts or other accounting records, in which case, such betting slips, score sheets and game slips must be registered with the Bureau of Internal Revenue in the same manner as other bookkeeping records are registered prior to the use thereof. With regard to the registration of admission tickets with this Office prior to the use thereof in pursuance to Section 17 of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations, you are advised that notwithstanding the transfer of the collection of the amusement taxes on admission to the local governments by virtue of Presidential Decree No. 231, as amended, admission tickets and other records to be issued or kept by operators or proprietors of movie houses, shall nevertheless be registered with this Bureau prior to the use thereof. cd