BIR to shut down another POGO for ₱1-B tax deficiency

The Bureau of Internal Revenue (BIR) is targeting to padlock another big online gaming company for nonregistration and non-remittance of the income tax of their alien workers estimated at more than ₱1 billion.

This was disclosed over the weekend by BIR Deputy Commissioner for Operations Arnel Guballa who said the main office and branches of this Philippine Offshore Gaming Operator (POGO) will be shuttered if the owner will ignore the notice to settle back taxes.

The revenue official declined to name the POGO, but likened its scale of its operations to that of Great Empire Gaming Amusement Corporation (GEGAC) which has its main office in Subic Free Port and two outlets in Metro Manila closed early this month.

GEGAC has been allowed to resume operations after the operator agreed to pay deficiency taxes totaling ₱1.3 billion with initial payment of ₱250 million and the balance payable before the end of the year.

Altech Innovations Business Outsourcing of Parañaque and Pasay, the second POGO to be closed also resumed its operations after making a down payment of ₱8.2 million.

Altech promised to pay the full ₱46-million deficiency assessment before the end of the year.

Guballa, who heads the BIR POGO strike force, rejected earlier the proposal of online gaming operators to apply the lower income tax rate prescribed by the Tax Reform for Acceleration and Inclusion (TRAIN) Law for individual taxpayers.

The salaries of the estimated 140,000 online foreign workers are subject to the higher 25 percent final withholding tax under the Tax Code.

The BIR expects to generate ₱24 billion yearly from POGOs, or roughly ₱2 billion monthly.