BLOOMBERRY RESORTS AND HOTELS, INC., vs. BUREAU OF INTERNAL REVENUE, REPRESENTED BY COMMISSIONER KIM S. JACINTO-HENARES, G.R. No. 212530, August 10, 2016

Facts:
Bloomberry Resorts is the Operator of Solaire; A Casino and Hotel. Bloomberry is questioning the legality of Revenue Memorandum Circular 33-2013 pursuant to RA 9337 saying that all income from gaming operations need to pay Corporate income tax at 30% on top of the franchise tax which is 5%.  Bloomberry is relying on the provisions of PD1869 when it said that income from gaming operation is subject only to 5% franchise tax on top of any other tax.

issue:
Whether or not Bloomberry should pay Corporate income tax.

whether or not Bloombery along with other operators can be exempted from its payment.

was there any inconsistency with RA 9337 and PD 1869

Held:
PAGCOR cannot be exempted from payment of taxes which is not liable to pay PD 1869 was clear when it made PAGCOR only liable to pay 5% franchise tax. RA 9337 only reinstated PAGCOR’s liability on related services like rent from food stalls and concessionnaires and revenue from the hotel. Such benefit under PD 1869 extends to contractees and licensees of which Bloomberry is included.

Credit to: Christian Villanueva