Non-Exemption from the Amusement Tax the Benefit Programs and Film Exhibitions

November 28, 1960 BIR RULING NO. 515-60 The President National Private Schools Athletic Association of the Philippines Baguio City S i r : Reference is made to your letter of the 23rd instant (which was referred to this Office by the Regional Director Regional District No. 1, that city), requesting exemption from the amusement tax on the benefit programs and film exhibitions that Association is contemplating to hold allegedly to defray the expenses to be incurred in the coming Agno Valley District Meet and National Private Schools Athletic Bowl, Baguio City. In support of said request, you stated that the PRISAA is a domestic non-stock and non-profit corporation and that it is a regular member of the Philippine Amateur Athletic Federation (PAAF). In answer thereto, I have the honor to quote hereunder the pertinent portion of B.I.R. Ruling No. 707, s. of 1958: cdll "With respect to private schools and athletic associations, section 5 of Act No. 3262 (granting charter to the PAAF) provides the Federation (PAAF) is empowered by proper rules and regulations to admit athletic organizations in the Philippines as members thereof. Such being the case, private schools and athletic organizations admitted by the Federation as members in accordance with its rules and regulations are also exempt from the amusement tax on the activities conducted by them, provided that such activities are authorized under rules and regulations prescribed by the Federation." (Parentheses supplied) It appearing from the certificate (Annex "A") submitted with your request that the PRISAA is "a regular affiliated member of the Philippine Amateur Athletic Federation", we take it that the letter had admitted the former as such member in accordance with its (PAAF) rules and regulations. However, to be exempt from the amusement tax, the activities that must be conducted or held by the PRISAA should be limited to those authorized under rules and regulations prescribe by the PAAF. Such being the case, and on the fair assumption that benefit programs and film exhibitions are not amount the activities authorized under said rules and regulations, it is regretted that your request has to be denied. In this connection, it may be stated that, pursuant to Republic Act No. 722, the holding of operas, concerts, recitals, dramas, painting and art exhibitions, flower shows, and literary, oratorical or musical programs are exempt from the amusement tax. A copy of this letter has, on even date, been furnished the Regional Director for his information. casia Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue