Rave party organizer to get 100% tax exemption?

A PROPOSED ordinance will give 100% tax exemption to events organizer Spectrum for its Kadayawan Invasion this August 21.

The committee on games and amusements granted the request of the organizer during a public hearing on June 18, according to the copy of the report.

Kaz Onozawa, chief executive officer and special affairs officer of Spectrum, told the committee during the public hearing that the company is planning to partner with the Kadayawan Foundation and donate a portion of the income to the group instead of paying the amusement tax.

Aside from the Kadayawan Foundation as the partner of the event, Onozawa also pledged to share their expertise to the local government on how to stage huge events in the city.

The Kadayawan Invasion, which will be held at the Crocodile Park grounds, could also draw in tourists, Onozawa said.

Maritoni Villanueva, who represented the CTO at the committee hearing, said tax exemptions could be granted for fees collected for and in behalf of “charitable, educational and religious institutions or associations” declared by law to be exempted from paying amusement taxes, according to the 2005 Revenue Code.

While saying the organizers may not be taxed for any donation given to the Kadayawan sa Davao Foundation, she said the CTO might still slap a 5% amusement tax on the organizer for portions of the proceeds declared as income.

However, the CTO representative said the organizer could lobby at the city council for a total exemption, since the Kadayawan Foundation would be the partner beneficiary anyway.

The item was referred to the committee from a letter written by Onozawa to Vice Mayor Paolo Z. Duterte dated May 25, 2015.

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