HONTIVEROS TO PAGCOR: REVOKE LICENSE OF TAX-DELINQUENT POGOs

"Kanselahin na ang lisensiya kung hindi pa rin maka-comply sa pagbabayad ng buwis."

This was the remark of Senator Risa Hontiveros as she urged the Philippine Amusement and Gaming Corporation (PAGCOR) to immediately revoke the license of Philippine Offshore Gaming Operators (POGO) for failing to settle their tax deficiencies amounting to at least P50B in 2019.

"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 following reports from the Bureau of Internal Revenue (BIR) that there are delays in the reopening of POGOs due to non-payment of unpaid taxes and non-submission of notarized commitment to pay such debts.

According to PAGCOR's Offshore Gaming Regulatory Manual issued on 03 July 2018, any arrears are a ground for non-renewal of license. Hontiveros explained that failure to discharge financial commitments including payment of correct taxes is a ground for the revocation of licenses. "Bureau of Internal Revenue (BIR) na mismo ang nagkumpirma na walang POGO ang nakapagbayad ng utang na P50B sa franchise tax at withholding tax para sa muling pagbubukas ngayong may community quarantine," the Senator stated. "Kung hindi sila sumusunod despite repeated warnings, hindi na lang dapat temporary closure ang katapat. It's time to cease their operations."

The BIR said that all the 50 offshore online casinos are not paying their franchise taxes due to issues of jurisdiction. POGOs are arguing that since they do not operate in the Philippines, they are not covered by the country's jurisdiction. However, Hontiveros said that an Ad Hoc Licensing Committee was created by PAGCOR to handle, process and give final recommendation on the issuance of POGO licenses. "Kumikita sila at nakakapag-operate sa pamamagitan ng mga service providers that are based in the country. Kaya marapat lang na magbayad din sila gaya ng mga nandito sa Pilipinas," she added.

Moreover, BIR Memorandum Circular No. 102-2017 affirmed that POGO operators and accredited service providers are subjected 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.

Hontiveros then urged the authorities to track down the 'bigger fish' and go after big-time tax evaders such as POGOs. "Kung ang maliliit na negosyo, agad napapasara dahil sa hindi pagbabayad ng tamang buwis, all the more that we should be strictly enforcing the same sanction on tax-delinquent POGOs na bilyon-bilyon ang pagkakautang sa gobyerno. PAGCOR should ensure that the country's best interests are being upheld. Hindi interes lang ng POGO," she concluded.