Section 1.
Section two hundred and fifty-nine of the National Internal Revenue
Code, as amended by section seven of Republic Act Numbered Thirty-nine,
is hereby further amended, so as to read as follows:
"Sec. 259. Tax on franchises. — There shall be
collected in respect to all existing and future franchises, upon the
gross earnings or receipts from the business covered by the law
granting the franchise a tax of five per centum or such taxes, charges,
and percentages as are specified in the special charters of the
grantees upon whom such franchises are conferred, whichever is higher,
unless the provisions thereof preclude the imposition of a higher tax.
For the purpose of facilitating the assessment of this tax, reports
shall be made by the respective holders of the franchises in such form
and at such times as shall be required by the regulations of the
Department of Finance.
"The taxes, charges, and percentages on franchises, shall be due and
payable as specified in the particular franchise, or, in case no time
limit is specified therein, the provisions of section one hundred
eighty-three shall apply; and if such taxes, charges, and percentages
remain unpaid for fifteen days from and after the date on which they
must be paid, twenty-five per centum shall be added to the amount of
such taxes, charges, and percentages, which increase shall form part of
the tax."
Sec. 2. Section two hundred sixty of the National
Internal Revenue Code, as amended by section eight of Republic Act
Numbered Thirty-nine, is hereby further amended, so as to read as
follows:
"Sec. 260. Amusement taxes. — There shall be
collected from the proprietor, lessee, or operator of theaters,
cinematographs, concert halls, circuses, boxing exhibitions, and other
places of amusement the following taxes:
"(a) When the amount paid for admission exceeds
twenty centavos but does not exceed twenty-nine centavos, four centavos
on each admission;
"(b) When the amount paid for admission exceeds
twenty-nine centavos but does not exceed thirty-nine centavos, six
centavos on each admission;
"(c) When the amount paid for admission exceeds
thirty-nine centavos but does not exceed forty-nine centavos, eight
centavos on each admission;
"(d) When the amount paid for admission exceeds
forty-nine centavos but does not exceed fifty-nine centavos, ten
centavos on each admission;
"(e) When the amount paid for admission exceeds
fifty- nine centavos but does not exceed sixty-nine centavos, twelve
centavos on each admission;
"(f) When the amount paid for admission exceeds
sixty- nine centavos but does not exceed seventy-nine centavos,
fourteen centavos on each admission;
"(g) When the amount paid for admission exceeds
seventy-nine centavos but does not exceed eighty-nine centavos, sixteen
centavos on each admission;
"(h) When the amount paid for admission exceeds
eighty-nine centavos but does not exceed ninety-nine centavos, eighteen
centavos on each admission; and
"(i) When the amount paid for admission exceeds
ninety-nine centavos, the tax will be thirty per centum.
"In the case of theaters or cinematographs, the taxes herein prescribed
shall first be deducted and withheld by the proprietors, lessees, or
operators of such theaters or cinematographs and paid to the Collector
of Internal Revenue before the gross receipts are divided between the
proprietors, lessees, or operators of the theaters or cinematographs
and the distributors of the cinematographic films.
"In the case of cockpits, cabarets, and night clubs, there shall be
collected from the proprietor, lessee, or operator a tax equivalent to
ten per centum, and in the case of race tracks, twenty per centum of
the gross receipts, irrespective of whether or not any amount is
charged or paid for admission: Provided, however, That in the case of
race tracks, this tax is in addition to the privilege tax prescribed in
section one hundred ninety-three. For the purpose of amusement tax, the
term "gross receipts" embraces all the receipts of the proprietor,
lessee, or operator of the amusement place.
"The taxes imposed herein shall be payable at the end of each month and
it shall be the duty of the proprietor, lessee, or operator concerned,
within ten days after the end of each month, to make a true and
complete return of the amount of gross receipts derived during the
preceding month 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 a 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 wilfully
made, there shall be added to the tax or to the deficiency tax, in case
any payment has been made on the basis of such return before the
discovery of the falsity or 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 added shall be collected in the same manner as the
tax."
Sec. 3. This Act shall take effect upon its
approval.
Approved: June 18, 1949
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