BIR to POGOs: pay the right taxes

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The Bureau of Internal Revenue (BIR) warns delinquent Philippine offshore gaming operators (POGOs) and their service providers to either pay their appropriate taxes or face closure.

BIR Commissioner Caesar Dulay said some POGOs continue to ignore BIR’s demand letters, which ordered the POGOs to pay their outstanding tax liabilities. Failure to comply will result in the offshore gaming operators’ closure and loss of millions in revenue.

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“Tell them to cooperate and volunteer to pay. The problem is they don’t respond to our demand letters,” Dulay said.
The POGOs and service providers remain unyielding to the tax regulations despite the government crackdown.
According to Dulay, BIR closed down the first non-compliant POGO, the Great Empire Gaming and Amusement Corp. (GEGAC) on September 25. GEGAC failed to register with BIR.

However, GEGAC paid the BIR an initial P250 million and promised to pay its total tax liabilities balance in three months through post-dated checks.

As a result, BIR lifted the closure order against the POGO on September 27. GEGAC now continues to operate.

Finance Secretary Carlos Dominguez issued a third warning to remaining delinquent POGOs and service providers who continue to snub the agency’s demand letter to pay their right taxes.

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The Department of Finance earlier reported the uncollected tax liabilities from POGO is P21.62 billion.

Meanwhile, the BIR earlier reported that it already collected P200 million out of P2 billion target in withholding taxes of foreign workers.

Also read: BIR closes down POGO service provider GEGAC for tax violations, 6 Vietnamese rescued from Chinese prostitution den

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