Thunderbird v CIR (licensee operating own casino is taxable): Allegations, Court Orders and Status

What this case is about

Thunderbird Pilipinas Hotels and Resorts, Inc. v. Commissioner of Internal Revenue, G.R. No. 211327, is a decision of the Supreme Court of the Philippines, Third Division.

Thunderbird, the licensee of the Poro Point casino, challenged a tax assessment by the Commissioner of Internal Revenue. The case was filed in 2014 and falls under Gambling Tax Litigation.

The assessment covered deficiency income tax and expanded withholding tax for 2006, a total of PHP 17,929,817.09 before surcharge and interest. The question was how far the exemption in section 13(2)(b) of Presidential Decree 1869 reaches for licensees of PAGCOR.

Who is covered

The plaintiff is Thunderbird Pilipinas Hotels and Resorts, Inc., and the defendant is the Commissioner of Internal Revenue. The opinion was written by Leonen, J.

The ruling matters to private companies licensed to run their own casinos in the Philippines. It does not involve players or a class.

Is there a payout?

No payout exists for players in this case. The money at issue is a tax debt of PHP 17,929,817.09 that the operator owes the State, made up of PHP 12,488,946.65 in income tax and PHP 5,440,870.44 in expanded withholding tax.

Delinquency interest of 20% runs from 10 April 2009. The record shows no consumer fund or claim process. GamblingLawsuits.org is not a law firm and not a claims administrator.

What the court decided

On 11 November 2020 the Third Division denied Thunderbird's petition. The decision of the Court of Tax Appeals En Banc of 29 January 2014 was affirmed.

The Court held that section 13(2)(b) of PD 1869 covers only parties that contract with PAGCOR for PAGCOR's own casino operations. It does not cover private entities licensed to run their own casinos. A licensee that runs its own casino is therefore taxable.

As of 14 November 2026 the status is judgment, and the record lists no further step.

Why it matters

The decision is a precedent that draws the line between contractees and licensees for Philippine casino taxation. Read together with the Bloomberry case listed below, it shows which gaming operators can claim the PAGCOR tax treatment and which cannot.

For tax rules on the player side, see Are Gambling Settlement Payments Taxable.

Questions people ask

Who won Thunderbird v CIR?

The Commissioner of Internal Revenue. On 11 November 2020 the Supreme Court denied Thunderbird's petition and held that a licensee operating its own casino is taxable.

How much tax did Thunderbird owe for 2006?

PHP 17,929,817.09, made up of PHP 12,488,946.65 in income tax and PHP 5,440,870.44 in expanded withholding tax. A 20% delinquency interest applies from 10 April 2009.

What is the difference between a contractee and a licensee?

A contractee contracts with PAGCOR for PAGCOR's own casino operations and falls under the exemption in section 13(2)(b) of PD 1869. A licensee runs its own casino and does not.

Related cases

• GL-PH-0009: Bloomberry Resorts and Hotels, Inc. v. Bureau of Internal Revenue, G.R. No. 212530, status judgment.
• GL-PH-0008: PAGCOR v. Thunderbird Pilipinas Hotels and Resorts, Eastbay Resorts and Judge Jurado, G.R. Nos. 197942-43 and 199528, status dismissed.