Bureau of Local Government Finance Opinion

August 28, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Antonio C. Espino, Sr. St. Joseph Subdivision 8600 Butuan City Sir : This refers to your letter dated March 31, 2000 which was received by this Bureau on June 27, 2000 seeking opinion on the following issues: 1. Is a cockpit an amusement place? 2. If it is an amusement place, what law is the basis of such an opinion? 3. If a cockpit is an amusement place and is leased by the owner to another person, who pays for the amusement tax on admission, the lessor or the lessee? Query No. 1 The answer is in the affirmative. While cockpit is not expressly mentioned in Section 140 of the Local Government Code of 1991 (LGC), nevertheless it may be deemed included in the blanket clause "other places of amusement". Query No. 2 Section 131 (b) and (c) of the LGC provides as follows: "Section 131. Definition of Terms. When used in this Title, the term: "(a) . . . "(b) Amusement is a pleasurable diversion and entertainment. It is synonymous to relaxation, avocation, pastime, or fun; "(c) Amusement Places include theaters, cinemas, concert halls, circuses and other places of amusement where one seeks admission to entertain oneself by seeing or viewing the show or performance; "xxx xxx xxx." It may be noted that paragraph (c) above only mentions establishments that are deemed included within the definition of amusement places. Hence, said provision does not exclude places that provide entertainment, relaxation, pastime or fun to a person where he pays a fee for admission thereto. The term "other places of amusement" would, therefore, include "cockpit" where the general public usually seeks admission for entertainment, fun or relaxation. To construe otherwise would reduce paragraph (c) above to the literal sense and at the same time, overlook the meaning and import of the preceding paragraph (b) under which the policymakers inserted in the law the definition of the very term "amusement". Query No. 3 Section 140 of the LGC makes the proprietors, lessees, or operators of the amusement place liable for the amusement tax, but the enumeration of the taxpayers are connected by the disjunctive conjunction "or", thereby implying that the tax should be paid by either the proprietor, the lessee or the operator, as the case may be, singly and not by all at once and the same time. It is hoped that this will help clarify matters. Very truly yours, (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge <www.blgf.gov.ph/downloads/opinion/localtax/2000/a2000-0623.pdf> last visited January 16, 2014.