Taxability of the Conduct of a Puericulture Centers of Benefit Dances

July 23, 1958 BIR RULING NO. 400-58 Mrs. Damiana M. Vda. de Revanera President, Naga Puericulture Center No. 90 and Maternity House Naga City M a d a m : Reference is made to your letter dated May 29, 1958, requesting reconsideration of the demand for amusement tax made upon you in our letter dated May 8, 1958. In support thereof, you stated, among others, that in a ruling of this Office (B.I.R. Ruling No. 200, current series), we held that the Social Welfare Administration, being a government agency, is exempt from the amusement tax. cdt In answer thereto, I have the honor to inform you that, in an earlier ruling (B.I.R. Ruling No. 151, s. 1958), we have held that as government agencies, activities conducted by puericulture centers which are governmental in character are exempt from internal revenue taxes. However, in the conduct of other activities, such as the holding of benefit dances, puericulture centers are subject to tax. While the abovementioned ruling is later than this one, we believe that this is the correct ruling and, therefore, the one that must be enforced by this Office. The fact that, as claimed in your said letter, that institution had always been exempted from taxes in previous years cannot estop this Office from imposing, in proper cases, the corresponding taxes upon its activities, because the Government is not estopped by the mistakes committed by its officers and employees. As regards the other reasons advanced by you in support of your present request, please be further informed that in imposing the amusement tax, the criterion is the nature of the undertaking whether or not it is one subject thereto and not the purpose of the undertaking or the ultimate use to which the proceeds therefore shall be applied. In view of all the foregoing, your request for reconsideration has to be, as it is hereby, denied. It will be highly appreciated if you can now settle the amount demanded in our letter to you dated May 8, 1958. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue