CTA Case No. 67 (Decision)

HEPUBLIG OF THR PHILIPPINES COURT OF TA MANILA APPEALS

PHILIPPINES INTERNATIONAL FAIR. INC.. Potitioner.

- versus -- C.T.A.CASENO.7

THE COLLECTOR OF INTERNAL REVENUE. Respondont.

C

DECISION

This in an appeal from a decision of tho res-

pondent Collecter ot Internal Ravenue, assessing

and demanding from petitioner, Fhilippines Interna-

tional Pair. Inc.,the anount f #29,633.62 s ause ment tax and surcharge cn the receipts derived fron

adaissions to the Aquacade Show sponcored oy it dur-

ing tho months of February and March l953 at the In-

ternationai Fair grounds.

The following facts heve been established.

Petitioner, a corporation orgenized under the laws

f the Philippines. ponsored in l953 an internatienal

fair and oxposition in tho City of Hanila. For this

purpote, the Philippine governnent pennitted the use

of the United Nations Pleze ard the golf links near tho Sunken Garden my the petitioner, free of chmrge.

for the site of the fair (xhibit K). Booths were

oreetod for the industrial and agricultural exposi-

tions Cf provinces together with booths of foreign

countries displaying their reapective products. There

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C.T.A.CASE O.Y DECISION *

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were also side shows ond verious attraotions.

anong which was the much-puhlicized "Aquacade Show

(Par. l.Fetition for Review. This particular show

wan shown during the months of February aad March

1953. It was brought all the ay fron the United

States by Mr. E. K. Pornandea, a showman.

Cn April 6, 1953.ir. Fernandez wrote a lettox

to the Collector of Internal Revunue roqucsting that

the Aquacade Show be cxeapte from the paylent ot the

anusenent tex on tho ground that it fallo within the

exemption provided for by Republic Act No.722 pp. 43-47,aIR Necords). The Colleetor.cn May 2,1953 denied oaid request, sayings

ical.numbera were ineluded ia the prc gran of the Aqua Thrills. still the ot the progran were rondered to give color and life to the shon nut they wero never qan shom. ties, chaupion swimners, and fancy divers represent the essence and principal foa- intended to be the nain attraction of the aquetic shows rendered by bathing beau- ture of tha program. The musical portions wwhile it io true that certein cw- P.52,IMecords

The matter ef axemption wes also taken cp thr

diplometic channels including the claim that the Fer- mandez Show was discriminated against, while the

Xavier Cugat Show, which also perforued ot the In- ternational Fair grounds, wao exenpted (p. 32,SIn Records). In this instance, ovr Department of Foreign Affairs endorsed the matter to the Colleotox cf In- ternal Revenue through the Secretaryof Finance fot

commant cn the alieged discriminatioa (p. 35, sIa Records). In a lettor dated July 3l.1953, the De-

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C.T.ACASE NO.T DECISION

3

puty Collector Cf Inteynal Revenue informed the

Secretary of Foreign Aftairs through the Seere- tary of Finance thatuattor of examption had al-

ready been coumented upon in the letter of the Collector to Mr.Fernandez dated May 2.1953 (.

36, aIR Records) cited above.

Meanwhtle. Fespondent in a letter datod May

22, 1953. domanded from petitioner the paynent of

the sum of 29.633.62 (pp.116-117,5I Records

Exhibit 8) as amusement tax plus surcharge on the

receipts of the Aquacade Show for the months of Feh

ruory and March 1953.On June 25,1953.Mr.Arsenio

Luz, on Director General of the Philippine Interna-

tional Fair, Inc.o wrote a letter to respondent r

questing for a reconsideratien ef tho imposition of

the amusement tax on the receipts of the Aquecade

Show on the ground that tM presentation was an artis

tic one and contended that it falio within the ex-

amption provided for in Republic Act No. 722 (Exhi

bit D.124-125 BIR Records).On Apri1 1,1954

respondent deniod said recuest for rosonaideratioa p.123iR Mecordsbut upon another request by petitioner dated Aprll 13,1954, the case wes ro fcrred to the Conference Staff of the Buraau of In-

ternal Revenue for rehearing. After due hearing thereof and submission of the case, the Conference

Stafi, on November 3. l954,receamended that the ro

quest for exeaiption by petitioner be denied and the

anount of 29,633.62 be collected fromitt (pp. 223

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DECISION - T.A.ASEN7

29, In Rccords).Accordingiy, on Decenbar 27

1954, respondent raiterated tho denand for pay- aent ot the above-stated assesamontp. 232,BIn

Rocords), from which decisioa, petitioner inter-

poad the presont appoal.

During the hearing of this case, the partics

entered inte a partial stipulation of facte, viz:

ccliectiolo from the petitioner in thn event this Honoreble court ehouid do- Gide that the "Aquacade" periormance ts not axoapt under Republic Act 722. i.That the sum of29.633.62 i

tho petiticn for review was filed by the dont Colloctor of Internal Revsnue. petitioner mithin thirty (so) days irom the dato of the decision ef tho renpon- 2. That. tho respondent admits that

pings merked aExhisgMi licatien in the newspapers of tho clip- 2 ang-5 S. Thet reapondent adnits tAo pub-

Exhibita sic. 4. That petitioner adnits that G 895 and 4 appearing gappearing on Dago 3of the BR Ne- cords and Exhibit appearing on pago in tho newspapers concorned. on page 48 of tno 3IR Records.Exhibit 129 of BIR Racords were duly publiohed

versity Aquacade Show (Exhibit F) as February 27, 1955 published in the Sunday Iimes issue datcd J. That the Philippine Wonen'n Uni-

oviuence submitted during tho heerings of Internal aevenue form part of tho re- nd that the ovidence prosented by each cf the parties thereat may mo adaitted in before the Conference Staif of the Bureau cozds of thn iurgau of Interaal Revenue ovidcncn. 6. That tho oral aad cocunentary

The ouly issue then tn whether or mot tho Aque-

code Show is exempt ire the payment of the aaus-

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C.T.ACASEO,67 DECTSION C

ment tax pursuaat to nepublic Act Mo. Tz2.

The tax was inposed purouant to section 2fo

of the Internnl Aovenus Code which readst

sraphs. Goncert halls, circuses. and othor placos of anusoment tha following tnxes: shall bo collected from the Proprietor, leusee or oparatcr cf theators. cinenate- sec.260 Amusesant taxnt. - There

(a) x A R

The petitioner claias examption trom the peyment of

amsenent tax on the receipts froi adnission to tho

Aquacade Show under tho provisions of Bopublie Act

No. T22 approved ca June Oo i932 the portinent por

tion of which roads an faliowo:

cipal anusenent tax on the recoipto do- concerta, recitals dremas, painting ond rary. oratoricai or msical prograne, or- rived thorefrom. art exhioitions, fiower ahows, and iits- cept fila oxhioitions and radio or phono- graphic records thereof, shali be axampt iron tho paynent of my netional or auni- section l. The holding of operas

The contention of netitioner in pranisod on the

siaim that the aquacade presentatioa in sn art and

falla within the purview ot Republis Ast Mo. T22. To

substantiate ito stand, petitionor preoontod wltnosses

liko aiss Anita Kane, an expert in her line, well xnowa in local cireles as dansouse and ballet inatruetress.

Nr. Arsonio Luz. a widely-travelled buaiaessnaa ond

connoiossur of ort, and also rr iaxiquo Davila, ono

of tho country's veteran inpressarios.

The iaaue centers upon tho cencapt of the vocahie art as used La Republic Act to. 722. For this pur-

pose, me quote hercunder dafinitions Ot ballet and

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C.T.A.CASE NO.6T

art, viz.

power of perforaing cortain actionse ae- quired by axperienco study, or obeerva- of knowlodge Or skill in effecting a do sired resuit. x x x application of skill and taste to Production eccording to aes- dn with tm theory or practice of taste in Sound speoch or movenent. .. tioni knack. x x x Systematic application thetic prineiples, an oceupation having tho oxpreasion of beauty in foru. Color Imtormnational Dictionary, 2nd Ec,P. l55) ART means skill, cexteritye or th webnters

ternational Uictionary).when used witheut tiato.5Corpus Juris,p.588; underscor- cifically a pantoninic dance exocutcd by o group, esp. wononi a kind ofartiatic dan- amreivenes in novmmr. (webster's in- any qualifying adjoctive or phrese. tho term higher maaifestatioa or Mrt par-exeellance. ing ouppiied.) cine parkedbY.crt vririinticacr and ao it is represonted in works of art by those who a distinctively denoninated or- is'frequantly usea to signify aa ort in its 3allet means theatrical dance; cpe-

Certoi dances with mimetic actions occon piained by C dance.(Daace Encyciopedia ponied by music ant sconic accessories, oll exprossive of a peetic idea or series of Cyelopedia of Diderot and d Alember (co. by AnatoloChujoy,-1949,P.36). idees of a dranatis atory providod by an author or choreographer l772) tella us thet Ballot to action on- A Ballet i n aeries of solo amt cou- x x x x The Ene

The oquacade presontatioa of petitioner cea- stitutes tho rythnic swimning ot sevoral beautiful

girls to tho acconpaniment ot music. This pertorn- ance im nade in wator and fequires even more aktll and treining than o hallet daneo presented on the stago. because in the foraer, the uancer should not

Cnly bo an acconplished danseuse but mist loo bo a

skiilcd swimmer. In fect this perforaance is known an water ballot". Dallot ronains a ballet regard-

loss ot tho media uood in tto presentation, whether presented on the stage Or in water. The artistic

essence ramaino and being a torm of ballet is thsre- fore an rt. The evidence show that water ballet

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C.T.A.CASENO.67 DECISION -

wao oot unknown anong tn corly dansours. Fron "The Dance Encyclopedia y Anatole Chujoy (Exhibits G. G-l). in cennection with the life history of Serge Diaghileff (1872-l929)we find this excerpt

During.the long l9ll season the fellow NiJiNskA,Nijinaky).Narcisae(Karsavima KCHssINSKA and Nijinsky) and the under- Dance Encyclopedia by Anatole Chujoy. P. 152; xh1b1tsG and G-1}. LE SPCT DE A ROSE (KarsavinaNijin Nijinsky) Aurora and the Prince (pas deuX frOm the SLEEPING BEAUTY (MATILDE wator ballet from the opor Sadko..(The ing ballets were addad to the zepertoire: PElaoUCiKA (karsavinaNijinsky.Bolm sky) Le Dien Blen (Karsavina BAONISHLAVA

Petitioner also presented munerous exhibits to

show that the "aquacade show" at the International

Fair woe no aifferent from the water ballet perform-

ances at the Malacaien Park in l954 for the Peace om

Amelioration Pund Drive and also from the Corel Aua

cade of l955 of the Philippine omen'o University

ExhibitsEE-l,-i5,F,F-l,.Fetitionere

claim (and respondent coes mot deny it) that the

iatter two presentations were not required to Pay

aisenent taxes, whereas in tho instant case no ex-

emption was recognizad. The fact that there were

fer addad attractiens do not effect the water-ballet

presentation for those were but mere incidents, and

as respondento only witness adnits, the maip attrac tion therete was the aquacada presentation.

We note that respondent himself, considors

ballet as a theatrical rapresentation achieved through terms of dancing (see Respondents Menorandum, pp. lC- 1l, November 7.1956. In the caso of Otoyza vs. Araneta (C.T.A.Case No.89.Janunry 3,1956) we have

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C.T.A CASE ND 6T DECISION

heid thet ballet performanee ceneo withtntan or- ptien provided y Republie At No.722.In

that Case we had occasion to state that the ovi-

dent intontion thon ef Congrass was to pronote arts

and letters (Sec.4Art.XIV.Philippine Ccastitu

tion) and to enhance our artistic and cultural de- velopwent (Congressional Rocerds,H..April l8 1952,Vol.III No.55,.1181-11z.Considering

ao wo do, that the water ballet is sut another fora

Of Dellot which raquires n evem specialized

training ooi skill than the sller on the stage. we

are theretore of the opinion ant so hold that the

aquacede show ef petitioner iall witnin the purview

Of the presentations exepted froe the anusenent taxes

under Republic Act No. 722.

I VIE CF HE FORGOIwe ind nd hcl

that the dceiaion of rerpondent appealed fros shoulo

m, as it in hereby roversed, o declare the peti-

tioncr, Philippines Interaational Fair. Inc. exempt.

purauant te Sepublic Act No. 728. trom the payuont of the amount of 29.633.62 represonting ausenont taxe and surchagges, without pronouncenent an to cost s.

SO ORDEREO.

Mnila.Decenor 29,1956

Presiding Judge AONT

WE CON-

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DUCISION T.CA7

CUR:

Shooiute Juage AAO

Associata Judge NLT WNa

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