The Bureau of Internal Revenue (BIR) clarified yesterday that documentary stamp taxes (DST) apply to all lottery operations of the Philippine Charity Sweepstakes Office (PCSO) including Small Town Lottery (STL). In a statement, BIR Commissioner Kim S. Jacinto-Henares said there is already a Court of Tax Appeals (CTA) decision, which was declared final and executory by the Supreme Court, affirming their position that PCSO is liable for DST on the sale of lottery tickets. Noting the similarities between the Super Lotto games and STL operations, Jacinto-Henares said PCSO is also liable for DST on the sale of betting tickets. KIM S. JACINTO- HENARES “The CTA declared PCSO liable to pay DST on its lottery operations (e.g. 6/55, 6/45, etc.) since Section 4 of Republic Act 1169 does not exempt PCSO from said tax. This decision of the CTA has been declared by the Supreme Court (SC) as final and executory,” [...]
