Gov’t regulators won’t stop POGO operations

Philippine gaming and tax regulators will not put a halt to offshore gaming operations in the country despite the Chinese government’s concerns about the alleged “modern slavery” in online casinos’ so-called hubs.

The Philippine Amusement and Gaming Corporation (Pagcor) said the two offshore gaming hubs now under construction in Cavite and Pampanga are not meant to limit the freedom of foreign workers, instead, they offer convenience and protection to them.

On Thursday, the Chinese embassy in Manila expressed “grave concern” over the planned moving of foreign employees, who are mostly Chinese, to “self-contained” Philippine Offshore Gaming Operations (POGO) hubs.

“When we refer to POGO hubs as self-contained communities, what we mean is that these hubs will have all the basic needs of the foreign employees of POGO – such as office and residential spaces, food estab

lishments, wellness and recreational facilities, service shops and others,” Andrea Domingo, Pagcor chairperson said.

At the POGO hubs, foreign workers will no longer need to go to “other places just for some of their needs,” Domingo said.

But she said “nonetheless, they are free to go anywhere they want to without any limitation to their personal rights or liberties.”

“The hubs are in fact being established for the protection of the foreign workers,” she said. “They are no longer exposed to crimes being committed against them on the streets, they are assured of good working conditions and decent living quarters, and will be given their proper visas.”

Domingo also added there will be other relevant government agencies setting up offices at the POGO hubs.

Meanwhile, Finance Secretary Carlos G. Dominguez III said there is no plan to temporarily stop the issuance of tax identification numbers (TINs) to foreign nationals working in POGO despite the concerns raised by the Chinese embassy about the work conditions of their citizens.

“We will not suspend the issuance of TINs to foreign workers,” Dominguez told reporters when asked if he would order the Bureau of Internal Revenue (BIR) to halt the release of the tax numbers prerequisite for local employment.

“As for the BIR, we are simply implementing the Tax Code, and requiring those earning Philippine sourced income to pay income tax,” he added.

Dominguez, President Duterte’s chief economic manager, however, assured that they will look into the concerns raised by the Chinese embassy in Manila and study what appropriate actions the government may take to address issues involving POGO workers.

Data from the BIR showed the agency has collected an initial 1186 million in withholding taxes from POGO workers, who are mostly Chinese, and is getting another P170 million this month in tax payments from these offshore gaming operators.

Finance Assistant Secretary Dakila Napao said that of the 48 notices sent out by the BIR to POGOs directing them to pay the withholding taxes of their foreign workers, 22 have either replied or protested the tax assessments.

“The BIR, though, has already collected P186 million from the notices sent out and is set to collect another P170 million moving forward. This started last month and will be collected on August 10,” Napao said.

In a separate report to the President and the Cabinet, BIR Commissioner Caesar R. Dulay said that for the initial year of operations of POGO service providers in 2017, the BIR collected only 1175 million in taxes.

POGO service providers remitted over 1579 million in taxes in 2018 and voluntarily paid 1789 million in the first half of 2019, Dulay said in his report during a recent Cabinet meeting.

As part of the steps to ensure that POGOs pay the right amount of taxes to the government, a Joint Memorandum Circular was issued requiring all foreign nationals and their employers or withholding agents to secure a TIN as part of the documentary requirements in securing employment permits and visas.

The BIR is now working with the Department of Labor and Employment (DOLE) in developing an interagency database of foreign nationals working in the country to effectively monitor them and ensure that they pay the correct amount of taxes to the government.