The petitioner believed that the CIR proceeded without or in excess of its

The petitioner believed that the cir proceeded

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repealed by the deletion of PAGCOR as a tax – exempt entity under NIRC. The petitioner believed that the CIR proceeded without or in excess of its power, or with grave abuse of discretion amounting to lack or excess of jurisdiction. The petitioner also asserted that the issued provision would affect the industry seeking welfare for the government and its people. To justify its direct recourse before the Court, the petitioner then submitted justifications. The petitioner contend that even though the CIR has the jurisdiction “to interpret provisions of tax laws through administrative issuances,” they cannot, however, “issue administrative rulings or circulars not consistent with the law sought to be applied since administrative issuances must not override, supplant or modify the law, but must remain consistent with the law they intend to carry out.” The respondent countered that no grave abuse of discretion was present on the issuance as it did not alter, modify, or amend its intent and meaning. The issue of the case is whether there was grave abuse of discretion in the issuance “subjecting the contractees and licensees of PAGCOR to income tax,” and whether the provision was valid or constitutional on its part. The court ruled, in accordance to their earlier decision that the petitioners income in its gaming operations is subject to the 5% franchise tax only. Income from other related services is the one subject to corporate income tax. Also, they maintained that a special law shall prevail over a general law. The court also concludes that CIR committed grave abuse of discretion when it subjected “both incomes from gaming operations and other related services to corporate income tax and 5% franchise tax” without due process, which has then generated added burden upon PAGCOR. The petition was granted in the end which ordered the BIR “to cease and desist from implementing Revenue Memorandum Circular No. 33-2013 insofar as it imposes corporate income tax on petitioners” income in its gaming operations.
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  • Fall '13
  • Law, PAGCOR, grave abuse

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