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'Good news,' Drilon says of looming POGO exit


Senate Minority Leader Franklin Drilon on Monday welcomed the projection of the Philippine Amusement and Gaming Corporation's (PAGCOR) that more offshore gaming operators will be leaving the country amid tax issues.

"That’s good news. Let them go. Hindi po natin kawalan ang POGOs [Philippine Offshore Gaming Operators]. Huwag po natin silang habulin. PAGCOR should stop playing a lover to POGOs," Drilon said in a statement.

"It should abandon any effort to [woo] them back. Our tax laws are clear: POGOs should pay franchise and withholding taxes," he added.

The Bureau of Internal Revenue (BIR) previously said "legal issues" are hampering the collection of franchise taxes from POGOs as these firms assert that they should not be subjected to such because they are non-resident corporations.

Drilon maintained that POGOs should settle their P50 billion unpaid taxes and that the BIR should immediately issue closure orders to delinquent firms in the said industry.

"Failure to implement it is a violation of its own rules," he added.

This was also the stand of Senator Risa Hontiveros.

"Kanselahin na ang lisensiya kung hindi pa rin maka-comply sa pagbabayad ng buwis. PAGCOR should exercise its regulatory powers and come down hard on tax-evading POGOs. Dahil kung wala namang parusa, wala namang multa, bakit pa nga ba sila magbabayad?" she said in a separate statement.

Citing, BIR Memorandum Circular No. 102-2017, Hontiveros said POGO operators and accredited service providers shall be subject to 5% franchise tax on Gross Gaming Receipts or a pre-determined minimum monthly revenue, whichever is higher, apart from income tax and withholding tax.

On Sunday, the PAGCOR confirmed that two POGO firms left the Philippines and more are seen to exit amid tax issues with the government.

"I’ve heard there are other companies that also plan to cancel their licenses, but I haven't received their official letters so I can't name them yet," said PAGCOR assistant vice president for offshore gaming licensing Jose Tria.

"There are other jurisdictions that have opened up offering better tax rates and friendlier environment," Tria added, "Some [POGOs] also can no longer take the criticisms they get each day that make them feel unwelcome in our country."

Last week, Senator Joel Villanueva slammed the alleged VIP treatment being given by the government to POGOs as he claimed that none has come forward to pay unsettled taxes which is a requirement for the partial resumption of operations amid the COVID-19 pandemic.

He said various POGO-related arrests continued in previous weeks even in the middle of a health crisis.

Finance Secretary Carlos Dominguez III said Villanueva's claim regarding the POGOs' non-payment of taxes is "probably true."—AOL, GMA News

 

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