Philippines raids largest POGO over tax neglect

Philippines continues to have POGO operations in the spotlight and raided the largest one over failing to pay taxes correctly.

Philippines.- The Philippine Offshore Gambling Operators (POGOs) remain a hot topic in the Philippines. As the country continues to assess what to do with them, it has recently struck its largest operation with a major blow.

The Philippines decided to raid its largest POGO operation over a tax issue. The company failed to properly register and pay its taxes and got shut down.

The Bureau of Internal Revenue (BIR) and Department of Finance (DOF) closed branches of New Oriental Club 88 Corporation (NOCC). The company had registered an office in Makati City, but not another one in Parañaque, BIR Deputy Commissioner Arnel Guballa explained.

Taxation

The Department of Finance of the Philippines said that the POGOs can be subject to taxes by the local government. He countered the opinion by the Office of the Solicitor General (OSG), which had said the opposite thing.

Finance Secretary Carlos Dominguez III said that POGOs pay corporate income taxes and their workers’ personal income taxes, the Philippine Daily Inquirer reported. He made these comments the same day that the OSG said that POGOs can’t be taxed. Dominguez III said that it’s not OSG’s role to say how the tax laws are applied. He explained it is a jurisdiction of the Bureau of Internal Revenue (BIR).

“The BIR issued an opinion to this effect months ago saying that the situs of income is where the services are rendered. Thus, since POGOs are providing services to their counterparts in the Philippines, they are subject to income tax,” Dominguez III said. “The same is true for value-added tax (VAT), which also is imposed on services rendered in the Philippines,” he added.