The Bureau of Internal Revenue (BIR) has slapped an P800-million tax deficiency against the Philippine Charity Sweepstakes Office (PCSO), it was learned Friday.

The tax liabilities covered alleged errors in the computation of documentary stamp tax (DST) in the sale of lotto tickets from 2006 to 2009. Under Section 190 of the Tax Code, the 10 percent DST should be based on the cost of the lotto ticket.

Lawyer Sol Adapon of the BIR's Large Taxpayer Service (LTS) said sweepstakes officials computed the tax at P8.5 per ticket after deducting P1.5 expenses for equipment rental and commissions.

PCSO is the fourth government office that the BIR is running into to collect huge tax debts as part of its bigger program of raising more funds to hit its P830-billion collection target for the year.

The other offices are the Makati City government, the Metro Manila Development Authority (MMDA), and the Department of Transportation and Communications (DoTC).

Informed sources said BIR Commissioner Joel L. Tan-Torres has instructed the LTS to determine first the financial capacity of the sweepstakes office before imposing and collecting the huge assessment.

They said Tan-Torres is aware that PCSO is disbursing amounts to support the various charitable projects like acquisition of ambulances and paying the hospital bills of the poor.

The sources added that the BIR chief does not want to impair its charitable works and payment of prizes.

Reports indicated that the PCSO owed the BIR roughly P200 million yearly from 2006 to 2009, or a total of P800 million for the period.