BIR goes after PCSO over P2.9B in unsettled documentary stamp tax

• BIR is going after PCSO for unsettled documentary stamp tax


• The PCSO failed to remit almost P2.9 billion in tax collected from small town lottery operators 


• BIR says PCSO officers might face raps if they intentionally withheld the tax remittance

The Bureau of Internal Revenue (BIR) said it will be going after another government agency, the Philippine Charity Sweepstakes Office (PCSO), over unsettled documentary stamp tax (DST) collections amounting to almost P2.9 billion.

According to the BIR, the unpaid DST covers 10 percent from the sale of tickets in small town lottery (STL). The National Internal Revenue Code mandates that a 10 centavo DST must be collected for every peso bet in online lottery, horse race, jai-alai, and other similar authorized numbers games.

However, it was discovered that STL operators have not been charged with the DST since operations began in 2006. The operators argue that they have already remitted their dues to the PCSO and the local government units (LGUs) where they run the STL.

BIR Commissioner Kim Henares, however, says that the PCSO could be held liable for failing to pay the DST, regardless of the state-owned corporations’ agreement with the STL operators.

“Wala naman silang exemption sa documentary stamp tax. Ang primarily liable po diyan ay iyung PCSO. Kung papaano po sila at iyung mga STL operator nila nag-usap, sa kanila po iyun, hindi kami kasama. Ang hinahabol namin ay kung sino ba ang nag-i-issue ng ticket. Ang nag-i-issue po ng ticket ay ang PCSO,” Henares told ABS-CBN News.

[They do not have an exemption from the documentary stamp tax. The PCSO is primarily responsible for that. Whatever agreement they have with the STL operators, is only between them and we are not involved there. What we are after are those who issue the ticket. The one who issues the tickets is the PCSO]

The BIR is currently auditing the PCSO to determine its income from the STL and collecting the unsettled DST. Henares further warned, however, that should officials of the government corporation be found to have deliberately avoided paying the DST, they would be held criminally liable.

“Ang sabi, hindi ko po alam kung totoo, ng mga STL operators, ibinibigay naman daw iyung amount na DST sa PCSO. Ang PCSO ang hindi nagbabayad. Kung ganoon ang sitwasyon, talagang makakasuhan ang mga officer ng PCSO. [We were told, and I am not sure if this is true, by the STL operators, that they give the amount of the DST to PCSO. PCSO is the one not paying. If that is situation, the officers of PCSO will face court cases],” she said.

Kicker Daily News