malaysiangThe Supreme Court on Wednesday clarified that non-profit, stock golf and country clubs are not required to give a 20 percent senior citizen discount to their elderly members on membership dues. In a July 25 decision written by Associate Justice Jose Midas P. Marquez, the high court’s 1st Division partially modified the ruling of the Quezon City Regional Trial Court (RTC) and granted the petitions filed by the Department of Social Welfare and Development (DSWD) and The Manila Southwoods Golf and Country Club, Inc. in a suit originally initiated by a senior citizen member questioning a provision in the Implementing Rules and Regulations (IRR) of Republic Act (RA) 9994 or the Expanded Senior Citizens Act of 2010 drafted by the agency. Under the assailed IRR provision, non-profit, stock golf and country clubs, which are not open to the general public and are private and for exclusive membership only, are exempted from giving the 20 percent senior citizens discount. The high court invalidated the provision in the law’s IRR, noting that this is beyond the power of the DSWD. However, the SC, despite invalidating this provision, clarified that the scope of the 20 percent senior citizen discount mandated by Section 4(a) of the Expanded Senior Citizens Act expressly applies only to the sale of goods and services and does not include membership dues. ‘The plain language of the law thus requires the sale of a good or service for the 20 percent discount to apply. Absent the sale of a good or service, the 20 percent senior citizen discount does not apply,’ it added. The SC cited its 2019 ruling in another case, the Association of Non-Profit Clubs, Inc. vs. the Bureau of Internal Revenue, where it said that when a club collects membership fees, it is not selling its service to the members. ‘Such (membership) fees are paid for the privilege of membership, and not for the purchase of a good or service,’ the court said. However, it said senior citizen discount applies to fees for locker rentals and other charges on their use of the clubs’ facilities and equipment. The suit was originally filed by senior citizen Carlos T. Santos Jr., who said this provision in the IRR is invalid for being contrary to the plain language of Section 4(a)(7) of the Expanded Senior Citizens Act, which includes services in hotels and similar lodging establishments, restaurants, and recreation centers among the services covered by the 20 percent senior citizen discount. The lower court ruled in favor of Santos, declaring the assailed IRR provision invalid and ordering Manila Southwoods to grant Santos the senior citizen discount for the exclusive use, utilization, and enjoyment or availing of the services of the club’s recreation centers. This prompted the DSWD and Manila Southwoods to go to the SC and seek the reversal of the RTC decision. ‘In contrast, the payment of fees for locker rentals and other charges pertaining to the use of golf facilities and equipment involves the sale by the golf and country club of services to the availing member. In paying these fees, the purchasing member is availing of the club’s services, and not for the privilege of membership in the club,” the high court held. The SC declared that associations charging membership dues are not required to give the 20 percent senior citizen discount, under Section 4(a) of the Expanded Senior Citizens Act, which does not grant the discount on the collection of dues for the privilege of membership.
Source: Philippines News Agency
