Philippine Racing Club, Inc. entitlement to Allocation from Its Earnings Not Within the Jurisdiction of the Commissioner to Decide

September 24, 1997 BIR RULING NO. 100-97 117 000-00 100-97 Philippine Tuberculosis Society, Inc. Quezon Institute Compound Eulogio Rodriguez Ave., Quezon City Attention: Justice Cecilia Muoz Palma President Gentlemen : This refers to your letter dated April 21, 1997 stating that the Philippine Tuberculosis Society, Inc. (PTSI) is by law the recipient of a 6% allocation from the gross earnings of the Philippine Racing Club, Inc. (PRCI) from horse races conducted by it (R.A. 7953); that the PRCI has consistently carried out its legal obligations for the past years; that due to the enactment of E-VAT law, the PRCI stopped giving PTSI its allocation for the year 1996 on the ground that said law repealed the particular provision of R.A. 7953 on its franchise grantees which includes the PTSI; that your Legal Counsel, Atty. Rene V. Sarmiento, has prepared an Opinion on the matter to the effect that even with the E-VAT Law, still the PRCI is under obligation to give the allocation to the franchise grantees under R.A. 7953; that in other words, the payment of taxes under the E-VAT law does not exempt the PRCI from giving the 6% allocation from its gross earnings to the PTSI as a special grantee which is a consideration for the franchise granted to it by law; and that R.A. 7953 is a special law which should not be declared repealed by a general law on taxation. Based on the foregoing representations, you now request for a ruling confirming the aforesaid opinion of your legal counsel. In reply, please be informed that the matter of whether or not the PTSI is entitled to an allocation from the earnings of the PRCI is not within the jurisdiction of this Office to decide. It is, therefore, suggested that your request be directed to the Department of Justice. cd Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue