RMC No. 08-2012: Circularizes relevant excerpts from the En Banc Supreme Court Decision in GR No. 172087 concerning the liability of PAGCOR to corporate Income Tax and the revocation of pertinent provisions of RR No. 16-2005 relative to the imposition of 10% VAT on PAGCOR

Summary

RMC No. 8-2012 circularizes excerpts from the Supreme Court En Banc Decision in PAGCOR vs. BIR, G.R. No. 172087 dated March 15, 2011, on PAGCOR’s corporate Income Tax liability and the revocation of provisions of RR No. 16-2005 imposing 10% VAT on PAGCOR.

Key points

1. Income Tax. PAGCOR failed to prove it is still exempt from corporate Income Tax. Section 1 of RA No. 9337 amended Section 27(c) of the NIRC of 1997 by omitting PAGCOR from the exemption, showing legislative intent to make it pay Income Tax.
2. VAT. PAGCOR is exempt from VAT under RA No. 9337, so the BIR exceeded its authority in imposing 10% VAT under RR No. 16-2005. That regulatory provision is nullified.
3. Motions denied. The Court En Banc Resolution dated May 31, 2011 denied with finality the separate motions for partial reconsideration filed by the BIR and PAGCOR.

Who is affected

• PAGCOR

Deadlines and effectivity

• Decision dated March 15, 2011
• Resolution dated May 31, 2011

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.