Publishing the Amendments Effected by Presidential Decree No. 1299 to Sections 206 and 268 of the NIRC

April 26, 1978 REVENUE MEMORANDUM CIRCULAR NO. 034-78 SUBJECT : Publishing the Amendments Effected by Presidential Decree No. 12 99 to Section 206 (Caterer's Tax) and Section 268 (Amusement Taxes) of the National Internal Revenue Co de of 1977 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is published below the provisions of Presidential Decree No. 1299 amending Sections 206 and 268 of the Tax Code of 1977. "Sec. 206. Caterers . A caterer's tax is hereby imposed as follows: "(1) On proprietors or operators of restaurants, refreshment parlors and other eating places, including clubs and caterers, three per cent of their gross receipts; "(2) On proprietors or operators of restaurants, bars, cafes and other eating places, including clubs, where distilled spirits, fermented liquors or wines are served, three per cent of their gross receipts from the sale of food or refreshments and seven per cent of their gross receipts from sale of distilled spirits, fermented liquors or wines. Two sets of commercial invoices or receipts serially numbered in duplicate shall be separately prepared and issued, one for each sale of food or refreshment served and another for each sale of distilled spirits, fermented liquors or wines served, the originals of the invoices or receipts to be issued to the purchaser or customer; "(3) On proprietors or operators of restaurants, refreshment parlors, bars, cafes and other eating places which are maintained within the premises or compound of a cockpit, cabaret, night or day club, Jai-alai, race track, or which are accessible to patrons of such cockpit, cabaret, night or day club, Jai-alai, race track by means of connecting door or passage, ten per centum in the case of cockpit, twelve per centum in the case of cabaret, night or day club, and twenty per centum in the case of Jai-alai and race track of their gross receipts. "Where the establishments enumerated above are operated or maintained by clubs of any kind or nature (irrespective of the disposition of their net income or whether or not they cater exclusively to members or their guests), the keepers of the establishments shall pay the corresponding tax at the rates fixed above." "Sec. 268. Amusement Taxes . There shall be collected from the proprietor, lessee or operator of cockpits, night or day clubs, Jai-alai, race tracks, a tax equivalent to ten per centum in the case of cockpits, twelve per centum in the case of cabarets, night or day clubs, and twenty per centum in the case of Jai-alai and race tracks, of their gross receipts, irrespective of whether or not any amount is charged or paid for admission. For the purpose of amusement tax, the term "gross receipts" embraces all the receipts of the proprietor, lessee or operator of the amusement place. "The taxes imposed herein shall be payable at the end of each quarter and it shall be the duty of the proprietor, lessee, or operator concerned, within twenty days after the end of each quarter, to make a true and complete return of the amount of the gross receipts derived during the preceding quarter and pay the tax due thereon. If the tax is not paid within the time prescribed above, the amount of the tax shall be increased by twenty-five per centum, the increment to be part of the tax. "In case of willful neglect to file the return within the period prescribed herein, or in case a false or fraudulent return is willfully made, there shall be added to the tax or to the deficiency tax, in case any payment has been made on the basis of the return before the discovery of the falsity or fraud, a surcharge of fifty per centum of its amount. The amount so added to any tax shall be collected at the same time and in the same manner and as part of the tax unless the tax has been paid before the discovery of the falsity or fraud, in which case, the amount so assessed shall be collected in the same manner as the tax." Features of the Amendments Amendments to Section 206. Only paragraph (3) was amended. Under the amendment the rates of tax on gross receipt payable by proprietors or operators of restaurants, refreshment parlors, bars, cafes and other eating places which are maintained within the premises or compound of a cockpit, cabaret, night or day club, Jai-alai, race track by means of a connecting door, are now as follows: (a) 10% in the case of cockpit (b) 12% in the case of cabaret, night or day club, and (c) 20% in the case of Jai-Alai and race track. Amendment to Section 268. The amendment to the first paragraph consists solely in the reduction of the amusement tax on gross receipts of proprietors, lessees or operators of cabarets, night or day clubs from 20% to 12%. EFFECTIVITY Presidential Decree No. 1299 took effect upon its approval on February 8, 1978. ENFORCEMENT All internal revenue officers and others concerned are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. aisa dc EFREN I. PLANA Acting Commissioner of Internal Revenue