Taxability of Perez Community Health Organization Benefit Ball

October 15, 1958 BIR RULING NO. 622-58 Mrs. Primitiva V. Regodon Treasurer, Perez Community Health Organization Perez, Quezon M a d a m : In answer to your letter dated July 25, 1958 to the Social Welfare Administrator, copy of which was referred to this Office, I have the honor to inform you as follows: This Office has previously ruled that government agencies, such, for example, as puericulture centers, are exempt from internal revenue taxes only on activities conducted by them which are governmental in character. While it does not appear whether or not the Perez Community Health Organization is a government agency, nevertheless, the benefit ball held by it on April 6, 1958 is clearly not an activity of a governmental character. Accordingly, even if it be conceded that said organization is a government agency, nonetheless, the receipts derived by it from said benefit ball will still be subject to the amusement tax prescribed in Section 260 of the National Internal Revenue Code. And as the tax due on those receipts remain unpaid up to the present, that organization is further liable for the 25% surcharge and compromise penalty for late payment, pursuant to Sections 260 and 352 of the same Code. In view thereof, it is regretted that the request contained in your said letter has to be, as it is hereby, denied. It will be highly appreciated if you can inform your co-signers of this decision. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue Copies furnished: 1. Executive Sec., Malacaang 2. P.R.O. Lucena, Quezon