The subject of paying corporate income taxes is usually a sore spot for a lot of corporations. But that wasn’t the case with Pagcor, who, believe it or not, are thrilled to being paying such an exorbitant amount in corporate income tax payments.
For the first time in its 27-year existence, Pagcor breached the Php1 billion mark for income tax payments in 2012, something the agency is calling a tremendous achievement. Normally, paying higher taxes isn’t cause for celebration for any company. But considering that Pagcor is a government-owned agency that oversees the casino gaming operations in the Philippines, the higher the tax payments, the more money the government can recoup from their “business”. Good times, we tells ya! Good times!
For 2012, Pagcor’s corporate income tax payment totaled Php 1.07 billion, making it the first time the agency has hit the billion-peso mark in its history. They came close in 2011, but ultimately fell short of hitting that threshold, finishing the year with Php960 million in corporate income taxes. “This is the first time ever that our agency has become part of the billionaires club in terms of corporate income tax payments,” Pagcor chairman and chief executive officer Cristino Naguiat Jr. said in a statement.
In addition to the Php 1.07 billion remitted to the government, Pagcor also paid Php5.5 billion to the Bureau of Internal Revenue, a number that also represents a 10.44 percent increase from their 2011 figure of Php 4.98 billion. Then there’s the Php1.37 billion that represents the five-percent franchise tax from their gaming operations, Php2.32 billion from franchise tax collections from licensees, and Php778 in withholding taxes.
Of all the government-owned or controlled (GOCC) taxpayers, Pagcor finished third in the proverbial income tax-paying standings, behind only the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) and the Power Sector Assets and Liabilities Management Corp.
Considering that Pagcor is expecting bigger things to come this year, it’s certainly looks like their stay into what Naguiat describes as the “billionaires club of corporate income taxpayer” will not be a one-time a fluke. With a brighter outlook expected in 2013, Pagcor might just as well apply for membership in this apparently prestigious club.