Press Release
February 4, 2008

CHIZ ASKS SENATE TO CHECK PAGCOR'S TAX PAYMENT AND REMITTANCES

For its repeated refusal to be totally transparent on its income, the Philippine Amusement and Gaming Corporation is under the heat from the Senate Committee on Ways and Means with a current resolution filed by the committee's chairman, Senator Chiz Escudero to look into the taxes which the PAGCOR failed to submit to the government.

Escudero said PAGCOR has failed and neglected to submit its income statement to the Department Of Finance (DOF), the Department of Budget and Management (DBM) and to Congress as categorically admitted by the DOF and the DBM themselves in the most recent budget deliberations.

Senate Resolution No. 287 which Escudero filed today directs the Senate Committee on Ways and Means to look into the taxes which PAGCOR, its licensees, partners, agents and assigns should be remitting to the Bureau of Internal revenue (BIR).

Records show that PAGCOR failed to submit its record of income derived from operations and activities, thus making it impossible to ascertain if indeed proper and correct taxes are being paid and remitted to the government.

The senator said Presidential Decree No. 1869, as amended, also known as the PAGCOR Charter, provides for a five percent (5%) Franchise Tax on the gross revenue or earnings derived by PAGCOR, its agents, assigns and/or casino operators from their businesses.

Under the said law, dividend income from casino and gambling operations shall be subject to a final income tax rate of ten percent (10%) in lieu of the regular income tax rates. Total exemption from income or other forms of taxes can only be derived under certain strict condition of investments.

Escudero said PAGCOR granted licenses to and entered into several agreements with private individuals and corporations for the purpose of engaging in casino, slot machine, bingo and other similar gambling operations, thus making such entities subject to the taxes mentioned above in the same manner as PAGCOR.

Recent budget hearings revealed that the reason for PAGCOR's non-submission is because it can neither explain nor justify the remittances it gives to the national government once compared with its income statement and that of its licensees and partners.

"Transparency is the serious issue that confronts PAGCOR now. We need to look into these to resolve the same through legislation if only to ensure an effective and efficient tax collection and administration".

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