The Supreme Court (SC) has affirmed with finality its decision issued last year which declared that the government’s imposition of a 5-percent franchise tax on gross bets from gaming operations of the Philippine offshore gaming operators (POGOs) is unconstitutional.
In an 8-page resolution, the Court denied the motion for reconsideration filed by the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) seeking the reversal of the said ruling.
It also directed the government to refund POGO licensees of the 5-percent franchise tax it collected from them under the Bayanihan 2 Law.
“It is evident that not to order a refund will result in injustice and inequity on the part of the POGO licensees… 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.
