Person Liable to Withhold the 20% Final Tax on the Pot Money (prizes) Put up on Cockpit Derbies

April 1, 1987 BIR RULING NO. 089-87 21 (c) (1) 089-87 S i r : This refers to your letter dated March 23, 1987 requesting a ruling as to the person liable to withhold the 20% final tax on the pot money (prizes) put up on cockpit derbies. It is represented that the promoter of "Larga Sa Ultra" a cockpit derby refused to remit to this Office the 20% withholding tax on the pot money (prizes) put up on said cockpit derby on the ground that he is not the withholding agent required by law to remit the tax. aisadc In reply thereto, I have the honor to inform you that every individual, corporation, partnership or association, in whatever capacity acting having the control receipt, custody, disposal or payment of such pot money (prizes) amounting to more than P3,000 shall deduct and withhold the 20% final tax before paying such pot money (prizes) to the person entitled thereto pursuant to Section 21(c)(1) in relation to Sections 51(a) and 53, all of the Tax Code, as amended by Executive Order No. 37. Accordingly, as the person having the receipt, control, custody, disposal and payment of said pot money (prizes), the promoter in this case is liable to withhold the 20% final tax on the pot money (prizes) amounting to more than P3,000.00 . Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner