A 5 percent franchise tax levied on Philippine Offshore Gaming Operations (POGOs) was unconstitutional and must be refunded to the operators, the country’s Supreme Court has determined.
According to the Manila Standard, the court reaffirmed the 2022 ruling and denied a motion for reconsideration from the Department of Finance and the Bureau of Internal Revenue.
“It is evident that not to order a refund will result in injustice and inequity on the part of the POGO licensees,” the ruling stated. “Thus, any amount that was collected from the POGO licensees … should be returned.
“All things considered, the court finds no compelling reason to reverse and set aside the assailed decision. Thus, the motion for reconsideration must be denied with finality,” the court added.
The government had argued that the tax was valid under the expanded licensing and regulatory authority of the Philippine Amusement and Gaming Corp. (PAGCOR). The court called that argument “bereft of merit.”
The decision followed a petition filed by a number of offshore gaming operators including Saint Wealth Ltd., Marco Polo Enterprises Ltd., MG Universal Link Ltd., OG Global Access Ltd., Pride Fortune Ltd., VIP Global Solutions Ltd., AG Interpacific Resources Ltd., Wanfang Technology Management Ltd., Imperial Choice Ltd., Bestbetinnet Ltd., Riesling Capital Ltd., Golden Dragon Empire Ltd., Oriental Game Ltd., Most Success International Group Ltd. and High Zone Capital Investment Group Ltd.
