Issue of January 7, 2018

Panagbenga Flower Festival
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Baguio Country Club justifies non–payment of amusement tax
by PIO release

The management of the Baguio Country Club (BCC) is not obliged to pay amusement taxes for the operation of its “Christmas Village.”

In his letter to City Treasurer Alex Cabarrubias, BCC General Manager Anthony R. de Leon explained that the Christmas decorative arts were arranged or exhibited in a mock-up village for better appreciation and presentation instead of ordinary display.

“We added a snow machine, nativity pageant and choir as supplementary activities to characterize a Christmas ambience for which the club spent nightly, and that is where the proceeds of the admission tickets were used. Note that we do not charge fees for members and persons with disability,” de Leon said.

With such purpose and nature of the club’s “Christmas Village,” de Leon asserted that management is convinced that it falls under the exempt activity provision of Republic Act 9640 and RA 7160 or the Local Government Code of the Philippines.

Under these laws, de Leon said the holding of operas, concerts, dramas, recitals, paintings, and art exhibitions, flower shows, musical programs, literary and oratorical presentations, except pop, rock, or similar concerts, shall be exempt from the payment of tax imposed by the concerned local governments.

Earlier, Cabarrubias wrote the BCC management stating among others that the “Christmas Village,” which collects admission fees, is subject to the collection of amusement tax by the local government pursuant to the provisions of RA 9640 and Ordinance 2000-0001 or the Revenue Code of Baguio City at the rate of 10 percent of the collected admission fees.

He requested BCC management for a declaration of the receipts derived from the operation of the Christmas Village that started sometime in November last year up to the first week of this month.

Likewise, the City Treasury Office noted that there are stalls or booths set up in the said activity, thus, the BCC management was requested to submit to the local government a list of stalls or booth owners to ascertain they have business permits and were able to settle their corresponding obligations to the city.

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