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    Philippine Amusement and Gaming Corporation (PAGCOR) v. Bureau of Internal Revenue (BIR) GR No. 172087 / March 15, 2011

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    Mini U. Soriano
    PAGCOR v. BIR (Whether or nor PAGCOR is exempted from the payment of corporate income tax and VAT and in the enactment of RA 9337.)

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    © All Rights Reserved
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    Philippine Amusement and Gaming Corporation (PAGCOR) v. Bureau of Internal Revenue (BIR) GR No. 172087 / March 15, 2011

    Uploaded by

    Mini U. Soriano
    63 views1 page
    PAGCOR v. BIR (Whether or nor PAGCOR is exempted from the payment of corporate income tax and VAT and in the enactment of RA 9337.)

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    GR 172087 / March 15, 2011

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    PAGCOR v. BIR (Whether or nor PAGCOR is exempted from the payment of corporate income tax and VAT and in the enactment of RA 9337.)

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    63 views1 page

    Philippine Amusement and Gaming Corporation (PAGCOR) v. Bureau of Internal Revenue (BIR) GR No. 172087 / March 15, 2011

    Uploaded by

    Mini U. Soriano
    PAGCOR v. BIR (Whether or nor PAGCOR is exempted from the payment of corporate income tax and VAT and in the enactment of RA 9337.)

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Philippine Amusement and Gaming Corporation (PAGCOR) v.

    Bureau of Internal Revenue (BIR)


    GR No. 172087 / March 15, 2011

    Facts:
    PAGCOR is a government-owned and controlled corporation (GOCC) created by Presidential Decree (PD)
    1067-A2 in 1977. Later PD 1067-B3 was enacted exempting it from payment of any type of tax except
    franchise tax of five percent from its gross revenue. PD 1869 consolidated all tax exemption PAGCOR
    had on customs duties, taxes, and other imposts on importations as well as on income and other taxes.
    In 1998, Republic Act 8424 was enacted exempting PAGCOR, together with the Government Service
    Insurance System, Social Security System, Philhealth, and Philippine Charity Sweepstakes Office from
    corporate income tax. Upon amendment of said law under RA 9337, PAGCOR was excluded from those
    exempted of corporate income tax. Petitions for certiorari and prohibition as to the constitutionality of
    said law were raised before the Supreme Court but the constitutionality was upheld. And so, BIR issued
    Revenue Regulations (RR) No. 16-2005 specially identifying PAGCOR as one of the franchises subject to
    the ten percent VAT on its gross receipts. Hence, the petition for certiorari assailing the constitutionality
    of RA 9337 and RR No. 16-2005.

    Issues:
    Whether or not PAGCOR is still exempt from corporate income tax and VAT in the enactment of RA
    9337.

    Held:
    No, PAGCOR is no more exempt from corporate income tax. When RA 9337 omitted PAGCOR from
    among those exempted to pay corporate income tax, it became required to pay said tax. Under the
    statutory construction principle of expression unius est exclusion alterius, the express mention of one
    person, thing, act, or consequence excludes all others. The express mention of the GOCCs exempted on
    paying the corporate income tax excludes PAGCOR from such privilege. Also, it cannot assail the
    constitutionality of RA 9337 under equal protection of laws because the basis for its previous exemption
    thereon was from its request to be exempted and not from a valid classification based on substantial
    distinctions to be covered by its protection. It cannot also assail its constitutionality on the basis on non-
    impairment provision of the Constitution because government franchise is subject to amendment,
    alteration, or repeal by Congress. RA 9337 is that amendment. However, RR No. 16-2005 is
    unconstitutional for being contrary to RA 9337. The said law does not provide that PAGCOR shall be
    subjected to VAT. RA 9337 actually exempts certain transactions from VAT when provided under special
    laws like PD 1869. It exempts from VAT entities and individuals who transacts with PAGCOR on its casino
    operations. And since the tax exemption was extended to them, it follows that PAGCOR is exempted
    from VAT also. Such manner of charging the VAT does not make PAGCOR liable to VAT. RR No. 16-2005
    is null and void for being contrary to RA 9337.

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