P100-M TAX LIABILITY

BIR padlocks unregistered POGO with up to 1,000 ‘mostly Chinese’ workers

The Bureau of Internal Revenue (BIR) on Thursday padlocked the offices of a Philippine Offshore Gaming Operator (POGO) for not registering and not filing value-added tax (VAT) returns.

The BIR in coordination with the Department of Finance (DOF), through the Task Force POGO, shutdown the head office of Altech Innovations Business Outsourcing in Aseana City, Parañaque and a branch at the Double Dragon Building in nearby Pasay City.

The closure order was implemented by BIR Deputy Commissioner for Operations Group Arnel Guballa and Finance Assistant Secretary Tony Lambino.

Altech Innovations has incurred a tax liability of around P100 million, Lambino said citing “information” from Guballa.

The taxman said Altech Innovations is not registered with the bureau as certified by BIR Revenue District Office No. 52-Parañaque City in violation of Section 108 and Section 236 of the National Internal Revenue Code of 1997.

“Value-Added Tax (VAT) is a form of sales tax. It is a tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the Philippines,” according to the bureau.

“It is an indirect tax, which may be shifted or passed on to the buyer, transferee or lessee of goods, properties or services,” it added.

Altech Innovations is a single proprietorship owned by Jan Erick Lavariaz Altavas, the BIR said.

It employs 700 to 1,000 workers, Lambino told GMA News Online.

“Yes, mostly Chinese,” he said.

Altech Innovations is the second POGO shutdown by the government in less than a month.

On September 25, Task Force POGO closed the head office and branches of the Great Empire Gaming and Amusement Corp. at the Subic Freeport in Olongapo, Eastwood in Quezon City, and Aseana City in Parañaque.

Great Empire was later allowed to resume operations after it offered to settle its P1.3-billion tax deficiency.

Early this month, the BIR also padlocked seven establishments cater mainly to Chinese employees of POGO firms in Southern Luzon. —VDS, GMA News