Tax Liability of Baliwag Provincial High School

October 31, 1958 BIR RULING NO. 653-58 Mr. Alejandro C. Cruz Baliwag Provincial High School Baliwag Bulacan S i r : Reference is made to your letters dated April 26 and July 17, 1958, requesting exemption from the payment of amusement tax on the proceeds derived from the benefit show sponsored by the Baliwag Provincial High School. In reply thereto, I have the honor to inform you that, despite the laudable reasons stated therein, your request cannot be granted for lack of legal basis. cdpr The fact that the benefit shows are sponsored by the Baliwag Provincial High School, a government agency, does not constitute a legal basis for exemption. While it is true that the government, in derogation of its sovereignty, cannot tax itself, nevertheless this principle finds application only in respect to the discharge of its governmental functions. Government agencies cannot seek refuge behind the protective cloak of this privilege where they invade fields of activities not necessary in their operations. Moreover, national amusement taxes accrue to the general fund and should never be appropriated by a particular instrumentality of the government to the prejudice of the general public. You are, therefore, requested to make settlement of the tax liability mentioned in Demand No. 1596, dated May 29, 1958 of the Quezon City Regional Office. prcd Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue