BIR to appeal ruling on casinos’ corporate income tax exemption

The Bureau of Internal Revenue (BIR) will ask the Supreme Court (SC) to reverse its decision exempting casinos from paying the 30 percent corporate income tax.

BIR spokesperson and Assistant Commissioner for Legal Service Marissa Cabreros said the bureau will file a motion for reconsideration (MR), stressing that it’s a standard procedure whenever the bureau gets adverse ruling by the court.

Cabrereos was reacting to the decision of the high court’s Third Division favoring the petition of Solaire Resort and Casino not to pay the income tax in lieu of the five percent franchise tax in its gross earnings.

The resolution invalidated Revenue Memorandum Circular 33-2013 signed by then BIR Commissioner Kim S. JacintoHenares seeking the collection of income tax from casinos licensed by the state-owned Philippine Amusement and Gaming Corporation (Pagcor).

Henares earlier urged the Duterte administration to pursue the case.

The former BIR chief told radio station DZMM that Pagcor had reduced the license fees and charges of four casinos operating in the country by as much as P1.9 billion for them to have extra fund to pay the income tax.

Henares also downplayed the claim of Solaire that the imposition of the tax is against the national interest of the government because it is a major component of the country’s tourism program.

Solaire said the tax exemption attracts and encourages foreigners to invest in the industry, making it at par or better than its competitors abroad.