Section 10Sec./Art. 10

Tax Provision. -The provision of existing laws to the contrary notwithstanding, the following taxes shall be imposed:

(a) The Grantee, its successors or assignees shall pay and/or remit:

(1) Documentary Stamp Tax. - On each horse race ticket, there shall be collected a documentary stamp tax of Ten centavos (P0.10):Provided,That if the cost of the ticket exceeds One peso (P1.00), an additional tax of Ten centavos (P0.10) on every One pesos (P1.00) or fractional part thereof shall be collected:Provided, further,That in the case of double forecast/quinellaand trifecta bets, the tax shall be Five centavos (P0.05) on every One peso (P1.00) worth of ticket.

(2) Franchise Tax. - The Grantee, its successors or assignees, shall be liable to pay the same taxes on their real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations are now or hereafter may be required by law to pay. In addition thereto, the Grantee, its successors or assignees, shall pay a franchise tax equal to twenty-five percent (25%) of its gross earnings from the horse races authorized under this franchise which is equivalent to the eight and one-half percent (8 1/2%) of the total wager funds or gross receipts on the sale of betting tickets during the racing days as mentioned in Section 9 hereof, allotted as follows:

(i) Five percent (5%) for the national government;

(ii) Five percent (5%) for the province or city/municipality where the racetrack is located;

(iii) Seven percent (7%) for the municipal hospital where the racetrack is located:

(iv) Six percent (6%) to the Philippine Anti-Tuberculosis Society; and

(v) Two percent (2%) to the White Cross.

The said taxes shall be paid monthly and shall be in lieu of any and all taxes of any kind, nature and description levied except the income tax, established or collected by any authority whether barangay, municipal, city, provincial or national, on its properties, whether real or personal, from which taxes the Grantee is hereby expressly exempted.

The Grantee shall file the return with and pay the taxes due thereon to the Commissioner of Internal Revenue or his duly authorized representatives in accordance with the National Internal Revenue Code, as amended, and the return shall be subject to audit by the Bureau of Internal Revenue.

(b) Taxes on Winnings. - Every person who wins in horse racing shall pay a tax equivalent to ten percent (10%) of his winnings or dividends, the tax to be based on the actual amount paid to him for very ewinning ticket after deducting the cost of the ticket:Provided,That in the case of winnings from double forecast/quinellaand trifecta bets, the tax shall be four percent (4%), and in the case of winning race horses, the tax shall be ten percent (10%) of the prize:Provided, further,That winnings amounting to Ten thousand pesos (P10,000.00) or less shall be exempt.

The taxes herein prescribed shall be deducted from the dividends corresponding to each winning ticket or the prize of each winning race horse owner and withheld by the operator, manager or person in charge of the horse races before paying the dividends or pirzes to the persons entitled theretoℒαwρhi৷.

The operator, manager or person in charge of horse races shall within twenty (20) days from the date the tax was deducted and withheld in accordance with the preceding paragraph, file a treu and correct return with the Commissioner of Internal Revenue in the manner or form prescribed by the Secretary of Funane, and pay within the same period the total amount of tax so deducted and withheld.