Amendments to Section 260-A of the National Internal Revenue Code and Section 4 of Republic Act No. 1169

October 8, 1977 REVENUE REGULATIONS NO. 15-77 SUBJECT : Amendments to Section 260-A of the National Internal Revenue Code and Section 4 of Republic Act No. 1169 TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 326, in relation to Section 4 of the National Internal Revenue Code of 1977, these regulations are hereby promulgated to govern the manner of reporting tax on winnings from jai-alai and horse races, and tax on sweepstakes total prize fund, for tax purposes. SECTION 1. Tax on winnings from Jai-Alai and Horse Races . (a) Every person who wins in horse races or jai-alai shall pay a tax equivalent to 10% of his winnings or "dividends", the tax to be based on the actual amount paid to the ticket. The same tax shall be collected from owners of winning race horses at the same time and in the same manner. (Sec. 260(a) as amended by PD 1157 of the National Internal Revenue Code effective June 3, 1977). (b) Mode of Collection . The tax herein prescribed shall be deducted from the "dividends" corresponding to each winning ticket and withheld by the operator, manager, or person in charge of the horse races or jai-alai before paying the dividends to the person entitled thereto. (c) Time of Payment and Return Required to be Filed . It shall be the duty of the operator or person in-charge of horse races and jai-alai to file a true and correct return on the tax on winnings or "dividends" in the amusement tax return (BIR Form 3701-A) and pay the tax due thereon to the collection agent of the city or municipality where the main office is located, or to the authorized agent bank of the Central Bank within twenty (20) days from the time tax was deducted and withheld. If the tax is not paid within the time prescribed above, the amount of the tax shall be increased by 25 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 falsity or fraud, a surcharge of fifty per centum of its amount. The amount so added 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 falsity or fraud, in which case, the amount so assessed shall be collected in the same manner as the tax. SECTION 2. Tax On Sweepstakes Total Prize Fund . (a) There shall be deducted an amount equivalent to five (5) per centum of the total prize for charity horse races and sweepstakes. Provided , however , that any prizes that may be paid out from the resulting prize fund, after deducting said 5 per centum shall be exempt from income tax (Sec. 4 of RA 1169, as amended by PD 1157). (b) Time of Payment and Remittance Statement . The manager of the Sweepstakes Office or its authorized officer is required to file a true and correct Remittance Statement (BIR Form 3701-B) of the tax on sweepstakes total prize fund and pay the tax due thereon to The Assistant Commissioner for Operation, BIR, Diliman, Quezon City, within ten (10) days from the date of each sweepstakes draw. SECTION 3. Effectivity . The new rates of tax on winnings of horse races and sweepstakes prize fund became effective on June 3, 1977. cdt CESAR VIRATA Secretary of Finance Recommended by: EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8 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 and 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 pay 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. BIR FORM No. 3701-B June ___, 1977 REMITTANCE STATEMENT OF TAX WITHHELD ON SWEEPSTAKES TOTAL PRIZE FUND FOR SWEEPSTAKES DRAW ON _____ 19 ___ SCHEDULE I 5% Tax on Sweepstakes Winnings Total Prize Fund P_________ Tax Due P_________ SCHEDULE II P0.12 Documentary Stamps and P0.12 Science Stamps No. of Tickets Sold ________ Opening Number ________ Ending Number ________ Documentary Stamps Due ________ Science Stamps Due ________ Documentary and Science Stamps Paid P________ I declare under the penalties of perjury, that this is a true, correct and complete statement, pursuant to the National Internal Revenue Code and the regulations issued under authority thereof. REMITTER NAME ________________ ____________________ ADDRESS _____________ Name of Authorized Officer _______________________ (Print Name) TAN __________________ _____________________ Signature TAN: ________________ SCHEDULE III 5% Tax On Sweepstakes Winnings Tax Numeric Code __________ Amount of Tax Paid P_________ Revenue Tax Receipt No. __________ Date Paid __________ SCHEDULE IV Documentary and Science Taxes Amount of Documentary Stamps Paid P_________ Amount of Science Stamps Paid P_________ Revenue Tax Receipt No. ______ Date Paid ______ CERTIFIED CORRECT: _______________________ BIR COLLECTION AGENT (Print Name) ________________ Signature __________________________ Revenue Collection District No. _________________ TAN On Jai-Alai Winnings Total Bettings DEDUCTIONS NET AMOUNT 10% Doc. & Science (In and Off Track) basis of Tax stamps (P0.10) @ 10% tax Withheld P1.00 of Total Bettings TAX DUE I declare under the penalties of perjury that this return has been examined by me and to the best of my knowledge and belief is true, correct and complete return, made in good faith pursuant to the National Internal Revenue Code, amended, and the regulations issued under authority thereof. Res. Cert. _____________: Issued at ______________: Date issued ____________: Amount Paid ___________: ____________________________ Signature of Taxpayer/Representative 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 and 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 surcha rge of twenty-five (25) percent 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.