POGO shut down for tax violation

Angel Movido, ABS-CBN News

<figure class="op-interactive"><div id="IVS_ABS_Body_Video_1_Container"> <ivs-player id="IVS_ABS_Body_Video_1" data-ivs-spid="3001339" data-ivs-key="e8c22c015ca9eafa76f1e3edfa03c603" data-ivs-vid="1383240" data-ivs-floating="1"></ivs-player> <script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/iframe-parent.js"></script> <script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/loader.js"></script> </div></figure><div class="iwantbar"><em>Video courtesy of Finance Assistant Sec. Tony Lambino</em></div><p>MANILA - The government has shut down a Philippine offshore gaming operator (POGO) for tax violations, the country&#x27;s Finance minister said on Wednesday.</p><p>&quot;POGO service provider Great Empire Gaming and Amusement Corp (GEGAC) is being shut down for lack of registration for VAT purposes,&quot; Finance Secretary Carlos Dominguez said in a statement. Dominguez said this was a violation of the tax code.</p><p>GEGAC has 8,100 foreign employees, of which 2,000 are employed in their office in Quezon City, said BIR Deputy Commissioner for Operations Arnel Guballa. The POGO operated in a still-unfinished building in Libis, Quezon City where it occupied the 4th to the 19th floors. </p><p>He said that while GEGAC&#x27;s main office was registered in Subic, and thus enjoyed tax perks, its operations in Quezon City were not registered with the BIR. </p><p>“We sent them letters to comply na. We gave them due process. Nag-lapse na yung period to comply. We sent the letters as far as 2 to 3 months ago,” Guballa said.</p><p>Officials from the BIR did not say how much GEGAC owed in unsettled taxes.</p><p>There are 60 offshore gaming operators currently licensed to do business in the country, according to the country&#x27;s gaming regulator. </p><p>The Philippine Amusement and Gaming Corporation (PAGCOR) however has already suspended applications for new POGO licenses.</p><p>An interagency body tasked to probe offshore gaming estimates there are roughly 138,000 Chinese workers in the internet-based POGO business.</p><p>Guballa meanwhile said the BIR estimates more than 100,000 of these foreign workers don&#x27;t pay proper taxes.</p><p>“Kasi unfair sa ating Pilipino di ba? Sweldo natin, kaltas agad tapos sila nagtatrabaho dito. Unfair yun di ba? Kailangan magbayad sila,” Guballa said. </p><p>(It&#x27;s unfair to us Filipinos. Our wages are taxed automatically. They work here. It&#x27;s unfair. They should pay.) </p><p>The Department of Finance earlier said POGOs and their service providers will be <a href="https://news.abs-cbn.com/business/09/15/19/finance-department-orders-shutdown-of-tax-evading-pogos">shut down</a> if they fail or refuse to pay proper taxes.</p>

<p>The government has shut down a Philippine offshore gaming operator (POGO) for tax violations, the country's Finance minister said on Wednesday.</p>

The government has shut down a Philippine offshore gaming operator (POGO) for tax violations, the country's Finance minister said on Wednesday.

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POGO shut down for tax violation

POGO shut down for tax violation

Angel Movido,

ABS-CBN News

Published Sep 25, 2019 10:16 AM PHT

|

Updated Sep 25, 2019 02:10 PM PHT

Read More:

POGO

tax violation

Dominguez

BIR

Chinese workers

GEGAC

PAGCOR

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