Campaign to Collect Caterer's Tax from Exclusive Clubs or Their Caterers

April 14, 1980 REVENUE MEMORANDUM ORDER NO. 15-80 SUBJECT : Campaign to Collect Caterer's Tax from Exclusive Clubs or Their Caterers TO : All Regional Directors, Revenue District Officers, and Others Concerned Pursuant to Section 206, as amended, of the National Internal Revenue Code, where restaurants, refreshment parlors, bars, cafes and other eating places 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), or by their caterers, the said keepers of such establishment shall pay the corresponding caterer's tax of 3% of their gross receipts from the sale of foods or refreshments and 7% of their gross receipts from the sale of distilled spirits, fermented liquors or wines, just like the proprietors or operators of restaurants, refreshment parlors and other eating places catering to and open to the general public. A campaign conducted in Revenue District No. 25, Revenue Region No. 4-A, to enforce the said law on exclusive clubs or caterers within the District has disclosed that the clubs have not been paying the caterer's tax, in violation of the provision of Section 206 of the Tax Code. The said campaign has resulted in the assessment and collection of the caterer's taxes due from them. You are, therefore, urged to wage a similar campaign within your respective jurisdiction by making direct contact with the Managers of exclusive clubs, informing them of their obligation under the law and asking them to pay all the caterer's taxes due the Government. Immediate compliance herewith is enjoined. A monthly progress report hereon should be submitted to this Office. cd i (SGD.) EFREN I. PLANA Acting Commissioner