BIR Ruling No. 123-62

November 15, 1962 BIR RULING NO. 123-62 Dr. Napoleon A. Amarra Lopez Sugar Central Fabrica, Negros Occidental S i r : Reference is made to your letter dated May 1, 1962, requesting information as follows: "As it is now Sweepstakes prices are tax free. I suppose this is so if the price is collected in the Philippine Charity Sweepstakes Office. Suppose, I cannot go there personally to collect the price because I'm scared of hold-up, robbery, kidnapping, etc., and someone offers to buy my winning ticket at a reasonable price, what am I going to do to avail myself of the tax-free privilege. This is also to facilitate explanation where I got my excess income." In answer thereto, I have the honor to inform you that to take advantage of the provisions of section 4 of Republic Act No. 1169 exempting sweepstakes price winners from income tax, the fact of sale of the winning ticket must be supported by evidence. In such case, the amount received by you as purchase price of the ticket shall be exempt from income tax. On the other hand, the vendee of the ticket shall declare for income tax purposes the whole prize collected by him from the Philippine Charity Sweepstakes Office, with the benefit, however, of deducting the amount he paid to you as purchase price of the ticket. aisadc Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue