{"id":777012231,"date":"2024-01-04T09:52:48","date_gmt":"2024-01-04T12:52:48","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777012231"},"modified":"2026-04-22T14:18:48","modified_gmt":"2026-04-22T17:18:48","slug":"philippines-pagcor-ordered-to-pay-up-on-deficiency-income-tax","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/philippines-pagcor-ordered-to-pay-up-on-deficiency-income-tax","title":{"rendered":"Philippines: PAGCOR ordered to pay up on deficiency income tax"},"content":{"rendered":"\n<p>The Court of Tax Appeals has ordered PAGCOR to pay PHP117m.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>The Philippines.-<strong>\u00a0The Court of Tax Appeals (CTA)<\/strong>\u00a0has ordered PAGCOR\u00a0to remit deficiency income tax of PHP117m (US$2.1m) for the years 2005 and 2006.\u00a0The ruling, delivered on December 22 by associate justice<strong> Lanee S. Cui-David<\/strong>, stipulates that\u00a0PAGCOR must also settle delinquency interest based on a 2017 Supreme Court decision\u00a0that referred the case back to the CTA for the final determination of the payable amount.<\/p>\n\n\n\n<p>The CTA set a basic deficiency income tax payment of PHP13.11m (US$235,500) for 2005 and PHP104.9m (US$1.88m) for 2006.\u00a0The legal issue originated in 2008, when the Bureau of Internal Revenue (BIR) issued assessments totalling PHP5.92 bn (US$106.35m), covering\u00a0<strong>deficiency income tax, value-added tax, and fringe benefit tax (FBT)<\/strong>\u00a0for 2005 and 2006.<\/p>\n\n\n\n<p>The 2017 Supreme Court ruling partially favoured PAGCOR, annulling the BIR&#8217;s assessment regarding deficiency income tax related to gaming operations.\u00a0The court clarified that while Republic Act 9337 (Value Added Tax Reform Law) did not revoke PAGCOR&#8217;s tax privileges under Presidential Decree 1869 (PAGCOR Franchise Law of 1983), it withdrew the exemption from corporate income tax on revenue from related services.\u00a0The court asserted that FBT is not covered by these exemptions.\u00a0<\/p>\n\n\n\n<p><strong>See also:&nbsp;<\/strong><a target=\"_blank\" href=\"https:\/\/focusgn.com\/asia-pacific\/pagcor-posts-total-income-of-us906m-for-first-nine-months-of-2023\" rel=\"noreferrer noopener\">PAGCOR posts total income of US$906m for first nine months of 2023<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Court of Tax Appeals has ordered PAGCOR to pay PHP117m.<\/p>\n","protected":false},"author":176,"featured_media":777008355,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"The Court of Tax Appeals has mandated PAGCOR to remit PHP117m (US$2.1m) in deficiency income tax for the years 2005 and 2006, along with delinquency interest. This ruling follows a 2017 Supreme Court decision that clarified PAGCOR's tax privileges, specifically withdrawing its exemption from corporate income tax on revenue from related services, while upholding exemptions for gaming operations.","focusai_entities":"PAGCOR, Court of Tax Appeals, Bureau of Internal Revenue, Supreme Court, Lanee S. Cui-David","focusai_location":"Philippines","focusai_target_profile":"ceo_executive (0.9), regulator (1.0), compliance_legal (1.0), operator_casino (0.8), investor_analyst (0.9), journalist_researcher (0.95)","focusai_suggestions":[{"label":"Future Tax Implications","query":"What are the long-term implications of this judicial interpretation for PAGCOR's ongoing tax liabilities, particularly concerning the distinction between gaming operations and related services revenue streams?"},{"label":"Regulatory Precedent Impact","query":"How might this ruling on PAGCOR's tax exemptions influence the tax assessment and compliance frameworks for other licensed B2B and B2C iGaming operators within the Philippines?"}],"footnotes":""},"categories":[439,158,16333],"tags":[405],"class_list":["post-777012231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-news","category-slider-home","category-south-east-asia-news","tag-pagcor"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777012231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777012231"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777012231\/revisions"}],"predecessor-version":[{"id":777012259,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777012231\/revisions\/777012259"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/777008355"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777012231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777012231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777012231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}