Treatment of Receipts of Operators of Amusement Apparatus

January 23, 1980 REVENUE MEMORANDUM CIRCULAR NO. 07-80 SUBJECT : Treatment of Receipts of Operators of Amusement Apparatus TO : All Internal Revenue Officers and Others Concerned It has been observed that there is at present a proliferation of places and/or establishments maintained by operators of amusement apparatus. For the privilege of using these apparatus, tickets are sold to patrons or sometimes they are simply coin-operated. While the owners and/or operators of such establishments are lessors of personal properties and, therefore, subject to the contractor's fixed and percentage taxes under Sections 192(1) and 205(17), respectively, of the National Internal Revenue Code, as amended, it has been noted that they have not been complying with applicable internal revenue laws and regulations. In order to maximize the collection of lawful taxes from this source, internal revenue officers and others concerned should see to it that the aforesaid taxes are paid and that the receipts and/or tickets issued by the aforesaid operators and/or owners are duly registered with this Bureau. It is desired that this circular be given as wide a publicity as possible. EFREN I. PLANA Acting Commissioner