A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1399
PRESIDENTIAL DECREE NO. 1399 -
AMENDING CERTAIN SectionS OF PRESIDENTIAL DECREE NO. 1067-A DATED
JANUARY 1, 1977, ENTITLED "CREATING THE PHILIPPINE AMUSEMENTS AND
GAMING CORPORATION, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS
THEREFOR AND FOR OTHER PURPOSES," AND PRESIDENTIAL DECREE NO. 1067-B
DATED JANUARY 1, 1977, ENTITLED, "GRANTING THE PHILIPPINE AMUSEMENTS
AND GAMING CORPORATION A FRANCHISE TO ESTABLISH, OPERATE, AND MAINTAIN
GAMBLING CASINOS ON LAND OR WATER WITHIN THE TERRITORIAL JURISDICTION
OF THE REPUBLIC OF THE PHILIPPINES"
|
chanroblesvirtualawlibrary
WHEREAS, it
is now the desire of the government to fully develop and exploit casino
operations as a source of revenue to finance important infra-structure
and socio- civic projects;chanroblesvirtualawlibrary
WHEREAS, to achieve this goal, after the successful experiment
conducted in the Floating Casino, "PHILIPPINE TOURIST I" during the
year 1977, there is now the need to expand the areas of operations
outside the Metropolitan Manila Area: chanroblesvirtualawlibrary
WHEREAS, it is now the intention of the government to allocate and
appropriate revenues generated from this newly developed source to fund
priority infrastructure and/or socio-civic projects throughout the
Philippines, as may be directed and authorize by the Office of the
President;chanroblesvirtualawlibrary
WHEREAS, to attain this objective, certain amendments have to be made
to Presidential Decrees Nos. 1067-A and 1067-B;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree the following:cralaw:red
Section 1. Section 5 of Presidential Decree No.
1067-A dated January 1, 1977, is hereby amended to read as follows:cralaw:red
"Sec. 5. Board of Directors. The Corporation shall
be governed and its activities be directed, controlled and managed by a
Board of Directors that shall be composed of five (5) members, namely:
The Chairman of the National Development Corporation, who shall act as
Chairman; (2) Government Corporate Counsel; (3) Office of the Executive
Assistant, Office of the President, or their respective
representatives; and two other members to be appointed by the President
of the Philippines from the private sector."
Section 2. Section 3 of Presidential Decree No.
1067-B is hereby amended to read as follows:cralaw:red
"Sec. 3. SPECIAL CONDITION OF FRANCHISE. — Sixty
(60%) per cent of the aggregate gross earnings derived by the Franchise
Holder from this Franchise shall be immediately set aside and allocated
to fund the following infrastructure and socio-civic projects within
the Metropolitan Manila Area;chanroblesvirtualawlibrary
(a) Flood Control.
(b) Sewerage and Sewerage.
(c) Nutritional Programs.
(d) Population Control.
(e) 'Tulungan ng Bayan' Centers.
(f) Beautification.
In addition to the priority infra-structure and socio-civic projects
within the Metropolitan Manila Areas specifically enumerated above, the
60% share of the government in the aggregate gross earnings derived by
the Franchise Holder from this Franchise may now be appropriated and
allocated to fund and finance any infra-structure and/or socio-civic
projects throughout the Philippines as may be directed and authorized
by the Office of the President."
Section 3. Section 4 of Presidential Decree No.
1067-B is hereby amended to read as follows: chanroblesvirtualawlibrary
Section 4. Exemptions. —
(1) Duties, taxes and other imposts on importations.
— All importations of equipment, vehicles, automobiles, boats, ships,
barges,rcraft and such other gambling paraphernalia, including
accessories or related facilities, for the sole and exclusive use of
the casinos, the proper and efficient management and administration
thereof, and such other clubs, recreation or amusement places to be
established under and by virtue of this Franchise shall be exempt from
the payment of duties, taxes and other imposts, including all kinds of
fees, levies, or charges of any kind or nature.
Vessels and/or accessory ferry boats imported or to be imported by any
corporation having existing contractual arrangements with the
Franchise, for the sole and exclusive use of the casino or to be used
to service the operations and requirements of the casino, shall
likewise be totally exempt from the payment of all taxes, duties and
other imposts, including all kinds of fees, levies, assessments or
charges of any kind or nature, whether National or local. chanroblesvirtualawlibrary
(2) Income and other taxes. —
(a) Franchise Holder: No tax of any kind or form,
income or otherwise, as well as fees, charges, or levies of whatever
nature, shall be assessed and collected under the Franchise from the
Franchise Holder; nor shall any form of tax or charge attach in any way
to the earnings of the Franchise Holder, except a Franchise Tax of five
(5%) percent of the gross revenue or earnings derived by the Franchise
Holder from its operation under this Franchise. Such tax shall be due
and payable quarterly to the National Government and shall be in lieu
of all taxes, levies, fees or assessments of any kind, nature or
description, levied, established, or collected by any municipal,
provincial or National authority.
(b) Others: The exemption herein granted for
earnings derived from the operations conducted under the franchise,
specifically from the payment of any tax, income or otherwise, as well
as any form of charges, fees or levies, shall insure to the benefit of
and extend to corporation/s, association/s, agency/ies, or individual/s
with whom the Franchisee has any contractual relationship in connection
with the operations of the casino/s authorized to the conducted under
the franchise and to those receiving compensation or other remuneration
from the Franchise Holder as a result of essential facilities furnished
and/or technical services rendered to the Franchise Holder. chanroblesvirtualawlibrary
(3) Dividend Income. — In the event the Franchise
should declare a cash dividend, that portion of the dividend income
corresponding to the participation of the private sector, shall, as an
incentive to the beneficiaries, be subject only to a final flat income
rate of ten (10%) percent in lieu of the regular income tax rates. The
dividend income shall not in such case be considered as part of
beneficiaries' taxable income. Provided, However, That such dividend
income shall be totally exempted from income or other form of taxes if
invested within six (6) months from the date the dividend income is
received, in the following:cralaw:red
(a) Operation of the casino/s or investments in any
affiliate activity that will ultimately redound to the benefit of the
Franchisee-corporation; or any other corporation with whom Franchisee
has any existing arrangements in connection with or related to the
operations of the casino/s;chanroblesvirtualawlibrary
(b) Government bonds, securities, treasury notes or
government debentures;chanroblesvirtualawlibrary
(c) BOI-registered or export-oriented corporation/s;chanroblesvirtualawlibrary
(d) Any productive enterprise, or
(e) In payment of government or other form of
indebtedness guaranteed by the government through any of its financing
or banking institutions.
(4) Utilization of foreign currencies. — The
Franchisee shall have the right and authority, solely and exclusively
in connection with the operations of the casino/s to purchase, receive,
exchange, and disburse foreign exchange, subject to the following terms
and conditions;chanroblesvirtualawlibrary
(a) A specific area in the casino/s or gaming pit
shall be put up solely and exclusively for players and patrons
utilizing foreign currencies; chanroblesvirtualawlibrary
(b) Franchise shall appoint and designate a duly and
accredited commercial bank, agent of the Central Bank, to handle,
administer and manage the use of foreign currencies in the casino/s;chanroblesvirtualawlibrary
(c) Franchise shall provide an office at the
casino/s exclusively for the employees of the designated bank, agent of
the Central Bank, where the Franchise shall maintain a dollar account
which will be utilized exclusively for the above purpose and the casino
dollar treasury employees;chanroblesvirtualawlibrary
(d) Only persons with foreign passports, or
certificates of identity (for HongKong patrons only), duly issued by
the government or country of their residence will be allowed to play in
the foreign exchange gaming pit. chanroblesvirtualawlibrary
(e) Only foreign exchange prescribed to form part of
the Philippine International Reserve and the following foreign exchange
currencies; Australian Dollar, Singapore Dollar, HongKong Dollar, shall
be used in this gaming pit;chanroblesvirtualawlibrary
(f) The disbursements, administration, management
and recording of foreign exchange currencies use in the casino/s shall
be carried out in accordance with existing foreign exchange
regulations; and periodical reports of transactions in such foreign
exchange currencies by the Franchise shall be duly recorded and
reported to the Central Bank thru the designated Agent Bank.
(g) The Franchisee shall issue the necessary rules
and regulations for the guidance and information of players qualified
to participate in the foreign exchange gaming pit, in order to make
certain that the terms and conditions as above setforth are strictly
copied with."
Section 4. Section 5, Par. (1) of Presidential
Decree No. 1067-B is hereby amended to read as follows:cralaw:red
"Sec. 5. Other Conditions. —
(1) Place. — The Franchise Holder shall conduct the
gambling activities or games or chance on land or water within the
territorial jurisdiction of the Republic of the Philippines. When
conducted on water, the Franchise Holder shall have the right to dock
the floating casino/s in any part of the Philippines where
vessels/boats are authorized to dock under the Customs and Maritime
Laws."
Section 5. This Decree shall take effect immediately.
Done in the City of Manila,
this 2nd day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|