ISSUES:
1. WON the amusement tax on admission tickets to PBA games a local tax –
NO
2. WON BIR Ruling No. 231-86 and BIR RMC No. 8-88 binds the government
– NO
3. WON income from the cession of streamer and advertising spaces to VEI is
subject to amusement taxes - YES
4. WON the petitioner should be charged with amusement tax – YES
HELD:
1. Sec 13 of the Local Tax Code indicates that the province can only impose a tax
on admission from the proprietors, lessees, or operators of theaters,
cinematographs, concert halls, circuses and other places of amusement. The
authority to tax professional basketball games is not therein included, as the
same is expressly embraced in PD 1959, which amended PD 1456, wherein it is
clear that the "proprietor, lessee or operator of . . . professional basketball
games" is required to pay an amusement tax equivalent to fifteen per centum
(15%) of their gross receipts to the Bureau of Internal Revenue, which payment is
a national tax. 1
Where general words follow an enumeration of persons or things, by words of a
While Section 13 of the Local Tax Code mentions "other places of amusement", particular and specific meaning, such general words are not to be construed in their
professional basketball games are definitely not within its scope. Under the widest extent, but are to be held as applying only to persons or things of the same
kind or class as those specifically mentioned.
1