Tax Exemption Granted to a Holder of a Prize-Winning Sweepstakes Ticket

February 27, 1958 BIR RULING NO. 160-58 Mr. A. Abriol-Santos San Fernando, La Union S i r : In reply to the queries contained in your letter dated February 7, 1958, I have the honor to inform you as follows: The prize won by you in 1957 as holder of a prize-winning sweepstakes ticket is exempt from income tax, pursuant to Section 4 of Republic Act No. 1169. However, for record purposes, the aforesaid prize-winning should be reported as income in your income tax return, even if the same is exempt from income tax. The abovementioned prize won by you is not subject to the additional residence tax as the same is not comprehended within the term gross receipts or earnings derived by a person from his business within the purview of Section 1(b) of Commonwealth Act No. 465, as amended, otherwise known as the Residence Tax Law. Accordingly, the aforesaid prize need not be declared for purposes of the additional residence tax. As regards your request that you be furnished with copies of the abovementioned laws, please be informed that copies of the same are not available for distribution. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Deputy Commissioner of Internal Revenue