PRESCRIBING THE MANNER OF COLLECTING THE INCOME TAX DUE ON THE NET PURSE PAYABLE TO MUHAMMAD ALI//HERBERT MUHAMMAD AND JOE FRAZIER/SMOKIN' JOE, INC. AND THE DISPOSITION OF THE PROCEEDS THEREOF.

• Number: Presidential Decree No. 804
• Sections: 3

Preamble

WHEREAS, the world heavyweight championship fight between

Muhammad Ali and Joe Frazier will be held in the Philippines on October

1, 1975 (September 30, 1975 New York Time) pursuant to an agreement made

on 23 June 1975 by and between the Games and Amusement Board, an agency

of the Republic of the Philippines, (hereinafter called "GAB") and Don

King Productions, Inc., an Ohio Corporation, with its principal place of

business at 30 Rockefeller Plaza, New York City and Robert Arum, Esq.,

450 Park Avenue, New York City;

WHEREAS, GAB, pursuant to the said agreement, agreed that

the Philippine income taxes to be imposed on the purses of Muhammad

Ali/Herbert Muhammad and Joe Frazier/Smokin' Joe, Inc. shall be limited

to the net purse of Muhammad Ali/Herbert Muhammad of $3,000,000 and to

Joe Frazier/Smokin' Joe, Inc., of $1,000,000, and the maximum tax

imposed thereon shall be at the rate of 30%;

WHEREAS, the said tax is presently collectible by the Bureau

of Internal Revenue, pursuant to Section 53, in relation to Section 54

(a) of the National Internal Revenue Code;

WHEREAS, it is the intention of the Government to utilize

the income from the said fight and the income tax thereon for the

development of the sports program of the Government after the

liquidation of all obligations incurred in connection with the

"ALI-FRAZIER FIGHT";

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, hereby decree that:

Section 1

SECTION 1. The provisions of the National Internal Re-venue

Code and other existing laws to the contrary notwithstanding, the income

tax due on the net purse payable to Muhammad Ali/Herbert Muhammad and

Joe Frazier/Smokin' Joe, Inc. shall be held by the Philippine National

Bank and applied to the obligations of the Games and Amusement Board

incurred with the said Bank in connection with the "ALI-FRAZIER FIGHT";

Section 2

SEC. 2. All other taxes, levies and assessments collected in

connection with the "ALI-FRAZIER FIGHT" shall be turned over by the

Bureau of Internal Revenue to GAB to effectuate the purpose of this

Decree.

Done in the City of Manila, this 30th day of September, in the year

of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary