Additional Charge in the Imposition of the Proper Amusement Tax Rate

September 14, 1959 BIR RULING NO. 449-59 The General Campaign Manager Jose Rizal National Centennial Commission Corner Canonigo & Isaac Peral Sts. M a n i l a S i r : Reference is made to your letter of the 31st ultimo, stating that as part of your national organization, you have provincial, municipal, chartered cities and barrio committees assisting in the nationwide fund drive being conducted by that Commission. Now those committees are contemplating to hold movie benefits to raise funds and would like to be informed if, upon arrangements with the theater owners, they can be allowed to charge an additional amount for each admission ticket. In other words, information is requested on whether or not such additional charge will be considered in the imposition of the proper rate of amusement tax. In answer thereto, I have the honor to inform you that, for purposes of the amusement tax, the aforesaid additional charge will not be considered, provided that the same is paid voluntarily by the persons seeking admission to the theaters and that no person shall be refused admission by reason of his inability or unwillingness to pay such additional charge. cdll Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue