Amusement Tax Exemption on the Admission Fees or Receipts of a Boxing Exhibition

November 26, 1958 BIR RULING NO. 683-58 The Chairman Board of Directors Pasay City Chapter Philippine National Red Cross PAL Area, International Air Field Pasay City S i r : This is in reply to your letter dated November 19, 1958, requesting exemption from the payment of the amusement tax on the admission fees or receipts of a boxing exhibition to be held on December 18, 1958 at the Rizal Memorial Coliseum. You stated that "the proceeds of the said boxing exhibition will inure to the benefit of the Philippine National Red Cross" and that "the management and supervision of the boxing exhibition will be undertaken by the Pasay City Red Cross Chapter and its personnel with the cooperation of Mr. Alejandro Suansing, a boxing promoter, without monetary considerations for his services." I have the honor to inform you that under Section 261 of the Tax Code, as amended, a 50% tax exemption is granted when the admission fees or charges are collected by or for and in behalf of a duly registered charitable institution or association. Accordingly, the Philippine National Red Cross, being a government agency pursuant to Opinion No. 42, series of 1949, of the Secretary of Justice, performing, among others, charitable functions, is hereby granted 50% exemption. It is required by this Office, however, that within ten (10) days after the boxing exhibition on December 18, 1958 at the Rizal Memorial Stadium, a statement of receipts and disbursements, duly supported by receipts and vouchers, together with a copy of the receipt duly certified by any responsible official of the Philippine National Red Cross acknowledging the receipt of the amount accruing to its benefit be submitted. If this requirement is not complied with, this Office will assess and collect the total amount of the amusement tax that may be due in accordance with the National Internal Revenue Code. It is understood that the funds that will accrue from the receipts of said boxing exhibition shall be subject to audit by a representative of the Auditor General in accordance with the accepted accounting procedures. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue