Great Empire resumes operations after settling 11.3-B taxes

The Great Empire Gaming and Amusement Corp. (GEGAC), the embattled offshore gaming service provider, managed to resume operations following its tax settlement with the Bureau of Internal Revenue (BIR), the Department of Finance (DOF) said yesterday.

Finance Secretary Carlos G. Dominguez III said that GEGAC vowed to pay 11.3 billion to settle the total estimated tax liabilities of the company with BIR, which ordered its closure last week due to nonpayment of value-added tax (VAT).

Dominguez said BIR Commissioner Caesar R. Dulay reported to him that GEGAC initially paid 1250 million last Monday and issued three post dated checks worth 11.05 billion for the remaining balance payable in October to December this year.

“I approved recommendation of POGO [Philippine offshore gaming operator] task force and BIR received payment of 1250 million. On September 30, it was allowed to operate,” Dulay said in a mobile phone message sent to Dominguez.

Dulay also ordered GEGAC to register its employees with the BIR.

“I expect others to voluntarily pay their tax liabilities,” the BIR chief said, noting there were still uncooperative POGO service providers that continue to ignore the tax agency’s demand letters.

Asked how many POGO service providers were in the line up for closure this month, Dominguez said “we don’t announce information like that.”

Earlier, the DOF and POGO task force, led by BIR Deputy Commissioner Arnel Guballa, padlocked GEGAC, one of the biggest offshore gaming service providers in the country that mostly employ foreign nationals.

“POGO service provider GEGAC is being shut down for lack of registration for VAT purposes,” Dominguez said. “This is in violation of sections 108 and 115 of the tax code as certified by Revenue District Office 019-Subic Bay Freeport Zone.”