WHEREAS, there is an urgent need to increase the financial
resources of the government to meet its requirements for expanding economic
development;
WHEREAS, there are amusement places which have not
adequately contributed to the common burden;
WHEREAS, it is imperative that these amusement places
contribute their just share to the government;
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:
SECTION 1. Section 268 of the National Internal Revenue Code
of 1977, as amended, is hereby further amended to read as follows:
"SEC. 268. Amusement Taxes.—There shall be
collected from the proprietor, lessee operator of cockfights, cabarets, night or
day clubs, boxing exhibitions, professional basketball games, Jai-Alai, race
tracks and bowling alleys, a tax equivalent to:
Twelve per centum in the case of cockpits,
Twelve per centum in the case of cabarets, night or day clubs,
Ten per centum in the case of boxing exhibitions,
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,
Twenty per centum in the case of Jai-Alai and race tracks, and
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 an 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 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 assessed shall be collected in the same manner as
the tax."
SEC. 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 hereby repealed
and/or modified accordingly.
SEC. 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.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President:
(Sgd.) JACOBO C. CLAVE
Presidential Executive
Assistant
