Day Clubs Operating in Similar Manner as Night Clubs are Subject to Amusement Tax

October 25, 1966 BIR RULING NO. 047-66 MEMORANDUM FOR: The Chief Collection Agents Division Thru the Revenue Operations Head (Collection) This refers to BIR Ruling No. 63-0029, s. 1963 wherein we held that day clubs, operating from sunrise to sunset, are not subject to the amusement tax prescribed in Section 260 of the Tax Code. The foregoing ruling was issued on the belief that day clubs do not fall within the purview of the law. However, after carefully examining the facts, we have arrived at the opinion that day clubs which operate in similar manner as night clubs, that is, they serve food, wine and other drinks; furnish music; and allow patrons to dance with either their own partners or professional hostesses furnished by them are subject to the amusement tax prescribed in Section 260 of the Tax Code. prcd This supersedes BIR Ruling No. 63-0029, s. of 1963. (SGD.) MISAEL P. VERA Commissioner of Internal Revenue