Gov’t closes large POGO service provider

The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) padlocked yesterday one of the biggest offshore gaming service providers in the country that mostly employ foreign nationals but does not pay taxes to the government.

In a joint operation by the DOF and BIR in cooperation with the Quezon City Police District, the tax authorities closed down Great Empire Gaming and Amusement Corp. (GEGAC), one of the service providers for a Philippine offshore gaming operator (POGO).

BIR Commissioner Arnel Guballa and Finance Assistance Secretary Antonio Joselito Lambino II led on Wednesday morning the task force POGO in compliance with Finance Secretary Carlos G. Dominguez III’s directive to halt the main operation of GEGAC in barangay Libis, Quezon City.

“POGO service provider GEGAC is being shut down for lack of registration for VAT [value-added tax] purposes,” Dominguez told reporters in a mobile phone message. “This is in violation of sections 108 and 115 of the tax code as certified by Revenue District Office 019Subic Bay Freeport Zone.”

During the raid on GEGAC in Quezon City, parallel BIR operations were also being conducted in the service provider’s other offices located in Subic, Zambales and Aseana, Parañaque.

GECAC employees, who were mostly Chinese nationals, were ordered to immediately vacate the facilities.

According to Dominguez, GECAC’s operation in Quezon City had around 8,100 foreign nationals and “a few hundred more” were identified in Zambales and Paranque.

The finance chief said the foreigners working for GECAC should be processed by the Bureau of Immigration.

According to the DOF, GEGAC was among the largest POGO service providers operating in the Philippines that mostly employ Chinese nationals.

Sough for comment, Philippine Amusement and Gaming Corp. (Pagcor) Chair Andrea Domingo said that they supported the operations held by the tax authorities, adding “anybody who breaks the law is penalized.”