The Bureau of Internal Revenue (BIR) padlocked yesterday 11 more branches of a Philippines Offshore Gaming Operations (POGO) in Paranaque City for failure to register.
“They will not be allowed to resume business unless deficiencies are corrected and the estimated P1 billion tax debts paid,” said Revenue Deputy Commissioner for Operations Arnel Guballa.
Guballa signed the closure order based on the recommendation of Paranaque Revenue District Officer Antonio Mangubat, Jr. who uncovered the anomaly during a tax-mapping survey.
The online gaming outlets are owned by Makati City-based New Oriental Club88 Corporation (NOCC).
Section 115 of the Tax Code (Value-Added Tax Law) authorizes the BIR to shutter a business for non-registration, non-issuance of sales invoice/receipt, non-filing of VAT returns and undeclaration of sales by more than 30 percent.
The BIR padlocked earlier branches of two POGOs located in Eastwood, Quezon City and Pasay for the same offense.
However, they were allowed to resume operations after their owners agreed to settle more than P1.7 billion in deficiency tax assessments, mostly final withholding tax (FWT) on the salaries of employees.
Records showed there are some 60 POGOs with estimated 50,000 workers, mostly from China.
Employee’s monthly wage ranging from P70,000 to P80,000 monthly is subject to the higher 25 percent FWT.
The BIR expects to generate P24 billion yearly from this source, or about P2 billion monthly. (Jun Ramirez)
