Internal Revenue Case of Miss Anita Kane

October 23, 1959 BIR RULING NO. 549-59 MEMORANDUM FOR The Commissioner This has reference to the internal revenue case of Miss Anita Kane, 2822 P. Celli, Pasay, involving the amount of P13,171.00 as amusement tax, surcharge and compromise. It appears that during the period from September 16 to October 3, 1955, Miss Anita Kane promoted the Alexandra Danilova Philippine Ballet Festival at the Far Eastern University Auditorium on which was assessed the amounts of P10,296.80 as amusement tax, P2,574.20 as 25% surcharge for late payment and P300.00 as compromise penalty, or a total of P13,171.00. Taxpayer questions the legality of the aforesaid assessment and refuses to pay the said amount of P13,171.00, invoking the decision of the Supreme Court in the case entitled, "Collector of Internal Revenue vs. Totoy Oteyza, et al.", promulgated of May 28, 1958. cdt Section 1 of Republic Act No. 722 provides: "Selection 1. The holding of operas, concerts, recitals, dramas, painting and art exhibition, and literary, oratorical or musical programs, except film exhibitions and radio or phonographic records thereof, shall be exempt from the payment of any national and municipal amusement tax on the receipts therefrom." From the available records of this Office, it would seem that ballet was the principal, if not the only feature or attraction and life of said festival and that no other form of amusement was shown or exhibited in consideration of the admission fees collected. As to whether or not ballet may be considered an art exhibition in order to benefit of the exemption granted by Section 1 of Republic Act No. 722, part of the decision of the Supreme Court in the aforementioned Totoy Oteyza case is hereby quoted: "The conclusion is thus inevitable that ballet performance, besides being truly an art, an art par excellence , is in fact included in the terms "concert", "opera" or "recitals" and therefore exempted from payment of the amusement tax." Premises considered, it is respectfully recommended that this case be closed and terminated. cdtech Respectfully submitted, MOISES A. PILAR Acting Chief, Law Division RECOMMENDATION: APPROVED: DISAPPROVED: (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue