The Supreme Court has issued a ruling preventing the Bureau of Internal Revenue from imposing corporate income tax on the private sector casino operators licensed by the Philippine Amusement and Gaming Corp.
in a decision dated Aug. 10, 2016, but only released Monday (Sept. 5), the SC granted the certiorari petition of Bilyonaryo Enrique Razon-led Bloomberry Resorts & Hotels Inc. against the BIR. and ruled that Pagcor?s income can be subject only to a franchise tax, which amounts to five percent.
Bloomberry, which operates Solaire Resort & Casino filed the petition in 2014 seeking to nullify memorandum circular 33-2013 which subjects Pagcor?s income from its operations and licensing of casinos, gaming clubs and other similar amusement places to a 30 percent corporate income tax.
“This Supreme Court decision will allow Pagcor and Bloomberry as an integrated casino resort to revert to the original license fee structure of 15 percent and 25 percent license fee (inclusive of the 5 percent franchise tax) for high rollers/junket and mass gaming respectively,? the company said.
