Exemption from the Amusement Tax on the Proceeds Derived from School Exhibition

October 13, 1959 BIR RULING NO. 484-59 The Division Superintendent of Schools Division of Mountain Baguio City S i r : Reference is made to your letter of even date, requesting exemption from the amusement tax on the proceeds to be derived from the exhibition by that Division of educational films in the different theaters in that city, as well as from the school activities to be performed by the school children and students mentioned therein. In support of said request, you stated that such proceeds shall be used for and accrue exclusively to the athletic and library funds of the different schools in that Division. casia In answer thereto, I have the honor to inform you that, based on your representations, your request, insofar as the proceeds to be derived from the aforementioned school activities are concerned, is hereby granted pursuant to section 260-B of the National Internal Revenue Code. With respect, however, to the proceeds coming from the film exhibition in question, you can pay an amusement tax equivalent to only 50% of the rates prescribed in section 260 of the same Code. In this connection, it is requested that you submit a statement of receipts and disbursements, duly supported by vouchers and receipts, within ten (10) days after the exhibition, together with a certified copy of the receipt signed by a responsible official of that Division acknowledging receipt of the proceeds; otherwise, this Office will proceed to assess and collect the corresponding amount of tax that may be due on those proceeds. It is understood that the funds that will accrue from the proceeds of said exhibition shall be subject to audit by a representative of the Auditor General in accordance with accepted auditing procedures. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue