Winnings in Times Journal Guessing Game in 1992 Polls subj. to 20% Withholding

June 10, 1993 BIR RULING NO. 244-93 WINNINGS IN TIMES JOURNAL GUESSING GAME IN 1992 POLLS SUBJ. TO 20% WITHHOLDING 28 (b) (7) (B) 220-93 244-93 Mr. Moises Molina 376 Samput Paniqui, Tarlac This refers to your undated letter endorsed to us by the Honorable Senator ERNESTO M. MACEDA, requesting clarification as to whether your P50,000.00 winnings in the guessing contest sponsored by the Philippine Times Journal in the last national elections coded as "Journalection '92" is indeed subject to the P10,000.00 final income tax. cdtech It is represented that you won P50,000.00 as consolation prize from the Philippine Times Journal guessing contest as to who will be the winning candidates in the last national elections; that you received only the amount of P40,000.00 instead of the full amount because you were deducted the sum of P10,000.00 as income tax; that it is your belief though that you should only be subject to 5% income tax, which is only P2,500.00, and not P10,000.00; that you want that the excess withholding tax be refunded to you as soon as possible because you are already 56 years old, jobless, indigent and a victim of the July 16, 1990 earthquake. In reply thereto, please be informed that pursuant to Section 21(c)(1) of the Tax Code, as amended, the tax on prizes and winnings (except prizes amounting to P3,000.00 or less which is subject to the tax rates under the schedule provided for in Section 21(a) of the Tax Code, and further excepting Philippine Charity Sweepstakes winnings) is 20% of the gross winnings/prizes. In view thereof, the sum of P10,000.00 which had been withhold from your gross winnings in the amount of P50,000.00 from the Philippine Times Journal guessing contest coded as "Journalection '91" as income tax is correct. It is, therefore, with deep regret that we could not grant your request for refund of the alleged excess tax that had been withheld from you for lack of legal basis. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue