Philippine Supreme Court Orders PAGCOR to Pay Sports Commission Dues for 30 Years
In a landmark decision, the Philippine Supreme Court ordered the Philippine Play and Game Company (PAGCOR) to remit 30 years’ worth of payments to the Philippine Sports Council. The ruling, which was announced on Thursday, Aug. 22, mandates that PAGCOR “must remit the full 5 percent of its annual gross income after a 5 percent franchise tax deduction from 1993 until it appears in favor of the Philippine Sports Council.”
Philippine Supreme Court rules regarding PAGCOR’s dues:
The court’s decision underscores the long-standing financial obligation PAGCOR owes to sports commissions that have been neglected for decades. The ruling is a significant development in ongoing efforts to ensure adequate funding for the country’s long-underfunded and overlooked sports programs.
PAGCOR, the nation’s casino regulator, reported significant revenue from its gaming operations in recent years. In the first half of 2024, PAGCOR’s gross revenue exceeded PHP 51.76 billion (roughly $921.7 billion), with net income reaching nearly $6.57 billion, a 121.5% year-over-year increase. Despite these strong fiscal figures, PAGCOR was required by the court to allocate a portion of its revenue, particularly 5% of its gross revenue after franchise taxes, to the Sports Council of the Philippines.
Another government agency, the Philippine Charity Works, was also involved in the ruling and ordered to pay similar fees to the sports commission from 2006 to the present. It highlighted the court’s commitment to broaden the scope of the ruling and correct financial neglect in the sports sector.
Arguments and compliance:
PAGCOR previously challenged this obligation, arguing that the sports commission does not deserve a 5 percent stake overall. After considering a 5 percent franchise tax, a 50 percent stake in the national government, and a 10 percent grant to the utility, the sports commission argued that the commission only deserves a 2.1375% residue of PAGCOR’s total income. However, the Supreme Court dismissed this claim and reaffirmed the sports commission’s right to a 5 percent stake overall. 프라그마틱 슬롯 사이트
The petition leading up to the ruling was filed by former House member and Youth and Sports Development Committee’s Joseler Guiao. His efforts culminated in a decision that could significantly improve the financial resources available to the Philippine Sports Council, allowing it to better support athletes and sports programs across the Philippines.
The ruling also resulted in the Philippines tying Hong Kong in the medal standings with two golds and two bronze medals at the 2024 Paris Olympics. The achievement was hailed by the Philippines as a record achievement, emphasizing the importance of continued financial support for the country’s athletes.
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