Taxability of Stall Holders Within a Race Track Compound

December 23, 1987 BIR RULING NO. 417-87 228 000-00 417-87 S i r : In reply to your letter dated October 5, 1987, please be informed that, pursuant to Section 228 of the Tax Code, stall holders within the compound of a race track are not subject to amusement tax unless they are the proprietor, lessee or operator of the race track. However, they are subject to internal revenue tax depending on the kind and nature of the business activity they are conducting, e.g., if they buy and sell merchandise, they are subject to the fixed tax of P200.00 and to the 1.5% tax on subsequent sales pursuant to Sections 161 and 164 of the Tax Code; if they operate a restaurant or eating place, they are subject to the caterer's percentage tax of 12% of their gross receipts under Section 172(3) of the Tax Code and a fixed annual tax of P200.00 under Section 161(1) of the same Code. cdta Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner