G.R. No. 43435 ; August 28, 1936
THE PEOPLE OF THE PHILIPPINE ISLANDS, plaintiff-appellee, vs. F. E. GREENFIELD, defendant-appellant.

FACTS

The defendant-appellant, F. E. Greenfield, as manager of the North Negros Sugar Co., Inc., was charged with violating a municipal ordinance of Manapla, Occidental Negros, for operating a talking cinematograph in January 1934 without paying the required quarterly license tax. He established and operated the cinematograph in a dedicated building, charging admission fees to both the corporation’s laborers and the general public. He contended the operation was not a business but merely provided amusement for the laborers to prevent them from seeking entertainment elsewhere.

ISSUE

Whether the operation of the cinematograph by the appellant constitutes a business subject to the municipal license tax under the ordinance.

RULING

Yes. The Court ruled that the operation had the character of a business carried on for the purpose of gain. The evidence showed that the admission fees charged were sufficient not only to cover regular operating expenses but also to recover the cost of the cinematograph machine and the building. Any proceeds remaining after deducting all necessary expenses constitute gain. Therefore, the appellant was liable for the license tax. The appealed judgment, which imposed a fine and payment of the license fee, was affirmed.

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