BIR Ruling No. 394-61

August 16, 1961 BIR RULING NO. 394-61 2nd Indorsement Returned to the Revenue Operations Head (Assessment) the papers bearing on the case of Ace Publishing, Inc. Taxpayer contends, that it is exempt from the publisher's that for the publication of the "Pilipino Komiks", "Tagalog Klasiks", "Hiwaga Komiks", "Especial Komiks", "Kenkoy Komiks" and "Educational Klasiks" by virtue of the exemption provided by Section 191 of the Tax Code reading "publishers, except those engaged in the publication or printing and publication of any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of advertisements". The publications in question appear to be issued at regular intervals with fixed prices for subscription and sale and that they are not devoted principally to the publication of advertisements. They, therefore, meet all the conditions prescribed by the law. The only remaining issue, therefore, is whether or not the publications in question are magazine or assuming that they are magazines, are they are magazines contemplated in the law? To arrive at the legislative intent, it is necessary for us to know the character and nature of the excepted periodicals. The excepted periodicals are defined in Webster's International Dictionary as follows: Newspaper A paper printed and distributed at stated intervals, usually daily or weekly to convey news, advocate opinions etc., now usually containing advertisements and other matters of public interest. cdta Bulletin A brief or condensed statement of news to the public, esp. as issued by an acknowledged authority; a public notice or announcement of a current event. Review An explanatory and critical account of a publication, a periodical containing critical articles primarily. Magazine A storehouse of information on any subject formerly used in titles of books; a periodical containing miscellaneous papers, esp. critical and descriptive articles, stories, poems, etc., designed for the entertainment of the general reader; pamphlets published periodically, containing miscellaneous papers and compositions. Comics A strip (comic strip) of consecutive drawings in panels, usually presenting humorous situations or adventures; also called the funnies; also a book or other collections of such drawings. cdti It is to be observed from the foregoing definitions that the excepted periodicals are essentially similar in substance although they differ in form. They all serve the same purpose, that is, public service in the field of information on current events, literary or other intellectual works, knowledge and opinions. The publications in question clearly do not fall under the same category as the excepted publications. While they may approximate a magazine by way of form, nevertheless, they are certainly totally different in substance. In any event, they cannot be considered as magazines but mere pamphlets. They are purely pamphlets of comics. They do not at all contain any information of public interest. The legislature could not have intended to include the publication of comics or funnies within the purview of the exemption. cdtech In the light of the foregoing, this Office, is of the opinion and so holds that the Ace Publishing, Inc., for the publication of the publications in question, is subject to the publisher's tax prescribed by Section 191 of the Tax Code. The proposed assessment against the Ace Publishing Inc. for the amount of P415,609.12 should, therefore, be given the course. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue