MANILA -- The government's drive against erring taxpayers claimed one of the biggest Philippine offshore gaming operator (POGO) service providers on Wednesday after it was padlocked for tax evasion.
Joint operatives from the Department of Finance (DOF), Bureau of Internal Revenue (BIR), and the Quezon City Police District (QCPD) trooped to the office of Great Empire Gaming and Amusement Corporation (GEGAC) in Eastwood City in Libis, Quezon City around 8 a.m. to serve the closure order.
BIR Deputy Commissioner Arnel SD. Guballa told journalists that GEGAC should be paying value added tax (VAT) for its operations outside the Subic Freeport Zone, where its main office is located and enjoys preferential treatment.
The company has another office operating in Parañaque City, which, along with its two other offices, were simultaneously closed for violation of Section 108 vis-à-vis Section 115 of the Tax Code.
Guballa said GEGAC’s offices in Quezon City and Parañaque City are not VAT-registered taxpayers, thus, the BIR has the right to either close or suspend its operations.
He said they have sent out notices to erring POGO and POGO-related companies around the country about two to three months ago to give them due time to comply with regulations.
“The period that we have given them to comply has lapsed so we have no recourse but to really close (them),” he said.
The BIR official said GEGAC needs to settle its unpaid duties before the closure orders against its operations will be lifted.
Earlier, BIR officials said they project monthly tax revenues from POGOs and POGO-related companies to be around PHP2 billion but current collections are below this amount.
Guballa explained that POGO-related companies should register both with the BIR and the Philippine Amusement and Gaming Corporation (Pagcor) to be able to operate legally in the country.
The government has established an inter-agency group that would look into the operations of POGOs and related companies to ensure that these pay correct taxes.
“This is already the start of our enforcement. Before the task force is always saying that we’re here, we are encouraging them to comply and to pay (but they didn’t heed it). So this is the start (of our enforcement),” he added. (PNA)
