Deduction by Person In Charge of Any Sweepstake, etc. of Income Tax Due from Winners of Prizes
Commonwealth Act No. 380, enacted on August 23, 1938, mandates that the manager or person in charge of any government-authorized sweepstake or lottery must deduct the income tax due from prize winners before disbursing the prizes. This deducted tax must be paid to the Collector of Internal Revenue within thirty days of determining the tax amount. The individual responsible for the sweepstake or lottery is personally liable for any failure to comply with this requirement. The Act also extends applicable laws concerning tax assessment and collection to its provisions and repeals any inconsistent laws.
August 23, 1938
COMMONWEALTH ACT NO. 380
AN ACT REQUIRING THE MANAGER OR PERSON IN CHARGE OF ANY SWEEPSTAKE, LOTTERY OR OTHER SIMILAR SCHEME FOR THE DISTRIBUTION OF PRIZES, AUTHORIZED TO BE CONDUCTED BY THE NATIONAL GOVERNMENT OR BY ANY SUBDIVISION, AGENCY OR INSTRUMENTALITY THEREOF, TO DEDUCT THE INCOME TAX DUE FROM WINNERS OF THE PRIZES AND TO PAY THE AMOUNT SO DEDUCTED TO THE COLLECTOR OF INTERNAL REVENUE
SECTION 1. It shall be the duty of the manager or person in charge of any sweepstake, lottery or other similar scheme for the distribution of prizes, authorized to be conducted by the National Government or by any subdivision, agency or instrumentality thereof, before paying the prizes, to deduct from the said prizes such sum as will be sufficient to cover the amount of income tax due from each prize winner, and to pay the amount so deducted to the Collector of Internal Revenue or his deputies within thirty days from the date the amount of the tax has been determined, and the said manager or person in charge is hereby made personally liable for such tax in case he fails to make the deduction and payment herein required to be made. The amount of income tax to be deducted, as herein provided, shall be determined after consultation with the Collector of Internal Revenue.
SECTION 2. All administrative, special, and general provisions of law, including the laws in relation to the assessment, remission, collection, and refund of internal revenue taxes, not inconsistent with the provisions of this law, are hereby extended and made applicable to all the provisions of this law and to the tax herein imposed.
SECTION 3. All laws inconsistent with the provisions of this Act are hereby repealed.
SECTION 4. This Act shall take effect upon its approval.
Approved: August 23, 1938