BIR padlocks erring POGOs, service providers in Cagayan

The Bureau of Internal Revenue (BIR) has temporarily closed 18 licensed Philippine Offshore Gaming Operators (POGOs) and their support service providers located in the Cagayan Economic Zone Authority (CEZA) for failure to register with the tax agency.

In a statement on Wednesday, the BIR said the POGO firms and service providers were ordered closed during the enforcement operations conducted by its POGO Task Force on February 11.

The taxman said the closed POGO entities, which are all offshore-based and duly licensed by CEZA to engage in interactive gaming, are the following:

• Asian BGE Limited
• Fine Day Holdings Limited
• Hana Talk Inc.
• NCGAC Limited
• NEO Kingdom Limited
• Oak Tree Services, Limited
• Succeed Asia Limited
• Wealthy Leap
• WUS Technologies Holdings Limited

Meanwhile, the support service providers of these POGO licensees, which are all CEZA-registered enterprises and whose operations were likewise suspended, are as follows:

• Alpha Fortune Management Solutions, Inc.
• Empire Group International & Management Tech Services, Inc.
• Hi-Source Services, Inc.
• Kui Business Services, Inc.
• Lyndhurst Services, Inc.
• Pacific Solutions Management
• Rimrock ICT Services, Inc.
• Succeed Asia Ventures, Inc.
• Top Asia Leisure and Entertainment Corporation

Pursuant to Section 2 of Republic Act 11590 or the POGO Law, an offshore gaming licensee shall be considered as engaged in doing business in the Philippines, therefore, they are required to register with the BIR, the agency said.

Under Section 5 of Revenue Regulations (RR) No. 20-2021, non-registration of POGOs with the BIR is a fraudulent act, which bears with it the penalty of implementing the closure orders against the erring offshore gaming licensees that shall likewise include the closure of all their respective accredited service providers, it added.

The BIR said the business operations of these POGO licensees and service providers will remain suspended until its registration requirements and other pertinent tax regulations are complied with and the corresponding deficiency taxes and penalties are paid.

“May these closure operations against unregistered POGO entities, along with our other tax enforcement activities like filing of tax evasion cases and intensified tax audit and investigation, serve as a deterrent for those who would commit tax violations," BIR Commissioner Caesar Dulay said.

"We urge all taxpayers to comply with the Bureau’s registration requirement, filing and payment of taxes, and other tax obligations in order to avoid facing business closure, penalties and possible criminal charges before the court."

A POGO licensee is a firm that operates the online games or sporting events via the internet using a network and software or program, and taps service providers to provide technical services, such as live-streaming of games for offshore customers or players who are non-Filipinos. — VBL, GMA News