Proceeds from "Kalayaan '86" for Rehabilitation of Radio Veritas Transmitter Are Not Subject to Income and Business Taxes

May 8, 1986 BIR RULING NO. 058-86 104 (a) (3) 30 (h) 170-84 058-86 Gentlemen : In reply to your letter dated April 21, 1986, I have the honor to inform you that the proceeds to be derived from "Kalayaan '86" a two-and-a-half hour Broadway Musical Extravaganza in connection with President Aquino's program to raise funds for the rehabilitation of the Radio Veritas Transmitter and as one gesture of celebration for our new government installed by our people by way of documenting and depicting the roots and circumstances of the recent political and social developments are not subject to income and business taxes. Moreover, considering that Radio Veritas is an organization for purely religious purposes within the contemplation of Section 27(e) of the Tax Code (See BIR Ruling dated October 10, 1979), the sponsors, patrons, and donors to the said fund-raising campaign shall be exempt from the donor's tax pursuant to Section 104(a)(3) of the Tax Code. However, contributions and/or donations to it as a religious organization are deductible for income tax purposes but only to the extent of 6% in the case of an individual donor, and 3% in the case of a corporate donor, of the donor's taxable net income as computed without the benefit of said deduction. It is, however, understood that Meredith Corporation shall be subject to income tax on any part of the above proceeds that will inure to its benefit. For this purpose, the books of accounts of Meredith Corporation shall be subject to examination. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner