WHEREAS,
there is an urgent need to increase the financial resources of the
government to meet its requirements for expanding economic development;chanroblesvirtualawlibrary
WHEREAS, there are amusement places which have not adequately
contributed to the common burden;chanroblesvirtualawlibrary
WHEREAS, it is imperative that these amusement places contribute their
just share to the government;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Section 268 of the National Internal
Revenue Code of 1977, as amended, is hereby further amended to read as
follows:cralaw:red
"Sec. 268. Amusement Taxes. — There shall be
collected from the proprietor, lessee or operator of cockfights,
cabarets, night or day clubs, boxing exhibitions, professional
basketball games, Jai-Alai, race tracks and bowling alleys, a tax
equivalent to:cralaw:red
1. Twelve per centum in the case of cockpits,
2. Twelve per centum in the case of cabarets, night
or day clubs,
3. Ten per centum in the case of boxing exhibitions,
4. Ten per centum in the case of professional
basketball games as envisioned in Presidential Decree No. 871,
Provided, however, That the tax herein shall be in lieu of all other
percentage taxes of whatever nature and description,
5. Twenty per centum in the case of Jai-Alai and
race tracks, and
6. Ten per centum in the case of bowling alleys.
of their gross receipts, irrespective of whether or not any amount is
charged or paid for admission. For the purpose of the amusement tax,
the term 'gross receipts' embraces all the receipts of the proprietor,
lessee or operator of the amusement place. Said gross receipts also
include income from television, radio and motion picture rights, if
any. (A person, entity or association conducting any activity subject
to the tax herein imposed shall be similarly liable for said tax with
respect to such portion of the receipts derived by him or it.)
"The taxes imposed herein shall be payable at the end of each quarter
and it shall be the duty of the proprietor, lessee, or operator
concerned, as well as any party liable, within twenty days after the
end of each quarter, to make a true and complete return of the amount
of the gross receipts derived during the preceding quarter and pay the
tax due thereon. If the tax is not paid within the time prescribed
above, the amount of the tax shall be increased by twenty-five 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 the falsity of fraud, a surcharge of fifty per centum of
its amount. The amount so added to any tax 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 the falsity or fraud, in which
case, the amount so assessed shall be collected in the same manner as
the tax."
Section 2. All laws, orders and decrees such as the
provision of Section 13 of Presidential Decree No. 231 in the case of
boxing exhibitions as well as rules and regulations inconsistent
herewith are repealed and/or modified accordingly.
Section 3. This Decree shall take effect immediately.
DONE in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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