BIR Ruling No. 025-83

February 18, 1983 BIR RULING NO. 025-83 Gentlemen : This refers to your letter dated October 8, 1982 requesting that the Philippine National Red Cross, which is sponsoring a PBA all star Basketball game on October 31, 1982 at the Cebu Coliseum to raise funds in support of its disaster relief assistance and other services programs, be exempt from amusement taxes. cdt In reply, please be informed that the pertinent portion of Section 4 or Presidential Decree No. 1264 reads as follows: Section 4. In furtherance of the purposes mentioned in the preceding sub-paragraphs, the Philippine National Red Cross shall: xxx xxx xxx "b. Be exempt from payment of all duties, taxes, fees, and other charges of all kinds on all its importations and purchases for its exclusive use, on donations for its disaster relief work and other Red Cross services, and in its benefits and fund raising drives all provisions of law to the contrary notwithstanding." Under Section 268 of the Tax Code, an amusement tax of 10% is imposed in the case of professional basketball games as envisioned in P.D. No. 871, and that the person, entity or association conducting said activity shall be similarly liable for the payment of the tax with respect to such portion of the receipts derived by him or it. As the sponsor of the PBA all star Basketball Game you are the entity conducting the said game; hence, you are liable for the payment of the amusement tax on the receipts derived by you therefrom. However, since you are exempt from all taxes on your benefits and fund raising drives, and considering that the games is being held to support said drives, you are exempt from amusement taxes on your receipts derived from said game. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue