Supplementing Revenue Memorandum Circular No. 33-76 dated September 29, 1976 Bearing on the Collection of Amusement Taxes by Providing for the Use of Revised Amusement Tax Returns

December 3, 1976 REVENUE MEMORANDUM CIRCULAR NO. 42-76 SUBJECT : Supplementing Revenue Memorandum Circular No. 33-76 dated September 29, 1976 Bearing on the Collection of Amusement Taxes by Providing for the Use of Revised Amusement Tax Returns TO : All Internal Revenue Officers and others concerned As emphasized in Revenue Memorandum Circular No. 33-76, in relation to Presidential Decree No. 231, the amusement taxes and fixed taxes due from proprietors, lessees or operators of cabarets, day and night clubs, Jai-Alai and race tracks (20% of their gross receipts) and from cockpits (10% of their gross receipts) and the annual fixed taxes due from the proprietors, lessees or operators of theaters or cinematographs, concert halls, circuses and other places of amusement remain national internal revenue taxes to be assessed and collected by the Bureau of Internal Revenue. Only the amusement taxes on admission to theaters, cinematographs, concert halls, circuses and other places of amusement have been transferred to local government. Moreover, prior to the passage of Presidential Decree No. 231, the law on amusement taxes was the subject of amendments by virtue of Republic Act No. 6110 and Presidential Decree No. 69. As summarized, these amendments consist of the following: 1. Amendments introduced by Republic Act No. 6110 to section 260-A of the National Internal Revenue Code. (a) Increase of the rate of amusement tax on winnings from 2 to 5%; (b) Subjecting owners of winning race horses to the same tax at the same rate. 2. Amendment introduced by Presidential Decrees No. 69 to section 260 of the same Code. (a) The time for payment of the amusement tax on gross receipts was changed from monthly to quarterly basis. (The time for payment of amusement tax on winnings remains the same, within twenty (20) days from the date the tax was withheld.) As a consequence of these amendments and the transfer of the power to levy and collect the amusement taxes on admission from the National Government to the local government, it has become imperative that the old forms required to be filed in paying the amusement taxes be revised to conform with the said amendments. Salient features of the revised forms are as follows: 1. Two amusement tax returns instead of one are prescribed. The first return, BIR Form No. 3701, is to be filed by proprietors, lessees, or operators of day or night clubs, jai-alai, cabarets or cockpits who are subject to the amusement tax on gross receipts. The second return, BIR Form No. 3701A, is to be filed by the operators, managers, or persons in charge of horse races or jai-alai who are required by law to withhold the amusement tax on winnings and pay the same to the Bureau of Internal Revenue. 2. These two amusement tax returns, BIR Form Nos. 3701 and 3701A, should be completely accomplished and signed, under oath. In no case shall any amusement tax return on gross receipts or on winnings be accepted if unsigned by the person/persons hereinbefore referred to and shall be signed under the penalties of perjury. 3. The amusement tax return known as BIR Form No. 3701 (for gross receipts) shall be filed, and the tax paid within twenty (20) days after the end of each quarter; BIR Form No. 3701A (for winnings) shall be filed, and likewise the tax remitted within twenty (20) days from the date the tax was deducted and withheld. 4. The aforesaid amusement tax returns shall be filed with the Office of the Revenue Collection Agent, Revenue District Officer, or Revenue Regional Director having jurisdiction over the amusement place. All internal revenue officers, particularly those concerned with the collection of internal revenue taxes, are hereby enjoined to give this circular as wide a publicity as possible. This memorandum circular shall take effect upon approval. EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 INSTRUCTIONS A. Who must file The proprietor, lessee, or operator of cockpits, cabarets, night clubs or jai-alai is required to file a true and correct return of his gross receipts. B. When & Where This return must be filed in duplicate within twenty to File (20) days after the end of each calendar quarter with the Collection Agent of the City or Municipality where the books of accounts of the taxpayer are kept. Upon filing this return, the total amount of the tax on gross receipts must be paid to the Collection Agent. In places where payment thru banks is the prescribed procedure, payment must be made to any authorized agent bank. C. Rate of Tax In the case of cockpits, the rate of tax is ten per centum (10%) of the gross receipts, irrespective of whether or not any amount is charged or paid for admission; in the case of cabarets, night clubs or jai-alai the rate of tax is twenty per centum (20%) of the gross receipts. D. Penalties If the amusement tax is not paid on time, there shall be added thereto a surcharge of twenty-five per centum (25%), 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 (50%) of its amount. INSTRUCTIONS A. Who Must File The operator, manager, or person in charge of horse races or jai-alai is required to file a true and correct return of the tax winnings. B. When & Where This return must be filed in duplicate with the To File Collection Agent of the City or Municipality where the books of accounts are kept within twenty (20) days from date the tax was withheld. Upon filing this return, the total amount of amusement tax due thereon must be paid to the Collection Agent. In places where payment thru banks is the prescribed procedure, payment must be made to any authorized agent bank. C. Penalties If the amusement tax is not paid on time, there shall be added thereto surcharge of twenty-five percent (25) 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. INSTRUCTIONS A. Who must file The proprietor, lessee, or operator of cockpits, cabarets, night clubs or jai-alai is required to file a true and correct return of his gross receipts. B. When & Where to File This return must be filed in duplicate within twenty (20) days after the end of each calendar quarter with the Collection Agent of the City or Municipality where the books of accounts of the taxpayer are kept. Upon filing this return, the total amount of the tax on gross receipts must be paid to the Collection Agent. In places where payment thru banks is the prescribed procedure, payment must be made to any authorized agent bank. C. Rate of Tax In the case of cockpits, the rate of tax is ten per centum (10%) of the gross receipts, irrespective of whether or not any amount is charged or paid for admission; in the case of cabarets, night clubs or jai- alai the rate of tax is twenty per centum (20%) of the gross receipts. D. Penalties If the amusement tax is not paid on time, there shall be added thereto a surcharge of twenty-five per centum (25%), 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 (50%) of its amount. INSTRUCTIONS A. Who Must File The operator, manager, or person in charge of horse races or jai-alai is required to file a true and correct return of the tax winnings. B. When & Where To File This return must be filed in duplicate with the Collection Agent of the City or Municipality where the books of accounts are kept within twenty (20) days from date the tax was withheld. Upon filing this return, the total amount of amusement tax due thereon must be paid to the Collection Agent. In places where payment thru banks is the prescribed procedure, payment must be made to any authorized agent bank. C. Penalties If the amusement tax is not paid on time, there shall be added thereto surcharge of twenty-five percent (25%), 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. INSTRUCTIONS A. Who Must File The operator, manager, or person in charge of horse races or jai-alai is required to file a true and correct return of the tax winnings. B. When & Where To File This return must be filed in duplicate with the Collection Agent of the City or Municipality where the books of accounts are kept within twenty (20) days from date the tax was withheld. Upon filing this return, the total amount of amusement tax due thereon must be paid to the Collection Agent. In places where payment thru banks is the prescribed procedure, payment must be made to any authorized agent bank. C. Penalties If the amusement tax is not paid on time, there shall be added thereto surcharge of twenty-five percent (25%), 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. INSTRUCTIONS A. Who must file The proprietor, lessee, or operator of cockpits, cabarets, night clubs or jai-alai is required to file a true and correct return of his gross receipts. B. When & Where This return must be filed in duplicate within twenty to File (20) days after the end of each calendar quarter with the Collection Agent of the City or Municipality where the books of accounts of the taxpayer are kept. Upon filing this return, the total amount of the tax on gross receipts must be paid to the Collection Agent. In places where payment thru banks is the prescribed procedure, payment must be made to any authorized agent bank. C. Rate of Tax In the case of cockpits, the rate of tax is ten per centum (10%) of the gross receipts, irrespective of whether or not any amount is charged or paid for admission; in the case of cabarets, night clubs or jai-alai the rate of tax is twenty per centum (20%) of the gross receipts. D. Penalties If the amusement tax is not paid on time, there shall be added thereto a surcharge of twenty-five per centum (25%), 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 (50%) of its amount. INSTRUCTIONS A. Who must file The operator, manager, or person in charge of horse races or jai-alai is required to file a true and correct return of the tax winnings. B. When & Where To File This return must be filed in duplicate with the Collection Agent of the City or Municipality where the books of accounts are kept within twenty (20) days from date the tax was withheld. Upon filing this return, the total amount of amusement tax due thereon must be paid to the Collection Agent. In places where payment thru banks is the prescribed procedure, payment must be made to any authorized agent bank. C. Penalties If the amusement tax is not paid on time, there shall be added thereto surcharge of twenty-five percent (25%), 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.