Gross Receipts of Amusement Places Derived from Sources Other Than from Admission Tickets Subject to 20% Amusement Tax

November 5, 1986 BIR RULING NO. 231-86 28 000-00 231-86 Gentlemen : This refers to your letter dated September 22, 1986 requesting reconsideration of BIR Ruling No. 268-000-00-642-85 dated March 20, 1985 holding that the term "gross receipts" for purposes of the 20% amusement tax imposed under Section 268 (now Section 228) of the Tax Code embraces all the receipts including in your case, the admission receipts derived by you as operator of racetrack during mid-week races which are duly authorized by the Philippine Racing Commission. In reply, please be informed that after a restudy of the facts of the case and the law pertinent thereto, this Office is of the opinion and hereby holds that the jurisdiction to levy amusement tax on gross receipts from admission tickets to places of amusement was indeed transferred to local government under P.D. No 231, as amended. Accordingly, only the gross receipts of amusement places derived from sources other than from admission tickets shall be subject to 20% amusement tax prescribed under Section 228 of the Tax Code, as amended. The tax on gross receipts derived from admission tickets shall be levied and collected by the city government pursuant to Section 2 of Presidential Decree No. 231, as amended. cdti BIR Ruling No. 042-85 dated March 20, 1985 is hereby revoked. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue TAN-T5150-J0923-A-4