De Lima airs view on tax exemptions

Source: www.mb.com.ph

MANILA, Philippines — The question of validity and the constitutionality of the Bureau of Internal Revenue (BIR) subjecting Philippine Amusement and Gaming Corporation (PAGCOR) to value-added tax and its removal from the list of the government-controlled and owned corporations exempted from income tax is subject to the interpretation of the Supreme Court (SC), Justice Secretary Leila de Lima said.

De Lima declined to give legal opinion to PAGCOR Chairman Cristino Naguiat Jr. on the proper interpretation of the various tax laws affecting the PAGCOR, particularly relative to the tax exemption of PAGCOR.

The matters, De Lima, stressed is now pending before the SC. “By settled policy and practice, the Secretary of Justice does not render opinion or give legal advice on matters which are sub-judice or pending litigation in court,” she said.

She said: “To rule on the query would be unwarranted intrusion into the exercise of the judicial powers and functions pertaining to SC or a separate and coordinate branch of government and could subject this Office to criticism for violation of the independence of the judiciary.”

The PAGCOR has pending petition for certiorari with the SC, specifically questioning PAGCOR’s unceremonious omission or removal from the list of GOCC’s exempted from income tax as provided by R.A. No. 9337, and BIR Issuance (RR No. 16-2005) subjecting PAGCOR to VAT.