Bloomberry wins SC tax case vs BIR

The Supreme Court (SC) has granted the certiorari petition of Bloomberry Resorts & Hotels, Inc. (BRHI) against the imposition of corporate income tax by the Bureau of Internal Revenue (BIR) on BRHI as a licensed casino operator of the Philippine Amusement and Gaming Corporation (PAGCOR).

In a disclosure to the Philippine Stock Exchange, parent company Bloomberry Resorts Corporation, the Supreme Court ordered the BIR to cease and desist from imposing corporate income tax on income from gaming operations of casinos duly licensed by the PAGCOR.

Bloomberry, the casino operator in Solaire Resort & Casino filed the petition in 2014 to nullify the provision of Revenue Memorandum Circular (RMC) No. 33-1013 issued by then BIR Commissioner Kim Henares in 2013 which imposed corporate income tax on casinos.

“This Supreme Court decision will allow PAGCOR and BRHI 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,” said Bloomberry.

The Supreme Court affirmed Bloomberry’s argument that as contracting party of PAGCOR, it was subject only to the 5 percent franchise tax on its gross gaming revenue, in lieu of all taxes, as provided under Section 13(2) of Presidential Decree No. 1869 (the PAGCOR Charter).

The Court cited its en banc decision in PAGCOR v. The Bureau of Internal Revenue, GR No. 215427, dated December 10, 2014.

source:  Manila Bulletin