BusinessWorld
SEPTEMBER 16' 2019
Gov't tightens screws
on erring P0G0s
THE FINANCE DEPARTMENT
(DoF) is turning up the heat on
Philippine Offshore Gaming Op-
erators (POGOs) found evading
taxes aue their foreign workers
in the country by threatening to
shut them down and sue them in
court.
ADoF press statement onSun-
day said Finance Secretary Carlos
G. Dominguez III gave this order
after a meeting with Bureau of
Intenal Revenue (BIR) brass on
Fdday wherein taxmen repofied
"the slow pace of collection of
withholding income taxes from
POGOs despite the issuance of
130 letter-notices to these firms"
with P21.62 biuion in cumulative
tax liabilities.
"Why don't we start closing
them down so they will answer
these assessments... Those who
don't p?y or respond to your as-
sessments, clamp them down,"
Mr. Dominguez told officials of
the task force monitoring the e[-
try of POGO foreign workers at
the meeting-
He told reporters in a mobile
phone message over the weekend
that the government will start
this phdse of its crackdown "as
soon as possible."
fti-
"What was discussed last
day afternoon was essentially
what Sec. Dominguez shared via
SMS- He said the closing down
of errant operators will start
ASAP," Finance Assistant Secre-
tary Antonio Joselito G. Lambino
II saidin a mobile phone message
on Sunday.
Field teams will consist of
representatives of the BIR, the
Department of Labor and Em-
plo]'rnent (DoLE), the Bureau of
Immigration and the Philippine
Amuqement and Gaming Corp.
(PAGeOR).
]'|ONDAY .
BIR Deputy Commissioner
Cayetano and Albay 2nd Dislrict Rep. Joey S.
Arnel S.D. Guballareported that
Salceda of the Senate and the House ofRepre-
from Januarjr to August, the gov-
sentatives wer lulch on Fliday to discuss the
ernment collected Pt.4 billion in
cunent goverDment! plaas for maling overall
withholding taxes ftom POGOs,
economic growth pick up from last semester's
already more than double the
disappointing 5.570 average.
' P579 million collected last year
The govenment has a 6-77o jross domestic
and the PI75 million in 20tZ
product groeth target for this year, and So-
Mr. Dominguez also told BIR
cioeconomic Planning Secletary Ernesto M.
top officials to reject offers of
Pemia has said it will take a 6,470 average pace
"lump sum" or any negotiations
this semester to hit the lower end of tlat goal,
for settlement with erring PO-
which Mr. Dominguez described as a "fighting
GOs.
target."
:'The collectiol should be per
individual," he totd BIR Commis- the linance chief said that in order to
avoid a recurrence of late national budge\
sioner Caesar R. Dulay and Mr.
enactment that led to the groxth slowdowr
Guballa itl tlat meeting.
last semester from 6.3% a year agq leaders of
. . "You force the issue and bdng -
both chambers of Congress have been meeting
them to court," Mr. Dominguez
every month to monitor progress of action on
said.
the proposed P4.l-trillion national budget for
"I mean, close them dowfi."
2O2O and the 25 priority measures President
^ POGOs, S1/3
Rodrigo R. Duterte had enumerhted jn his
POG0s, July 22 fourth State of the Nation Address. -
- Beatrice M. Laforga
fun51/1
The BIR and DoLE inApril formed a task
force to consolidate data on foreign workers
\ 7poS, p\h€,
employedtty POGOs.
BIR started collecting taxes from POGO
workers last July and ordered erring com_
paries to remit withholding taxes from the
workers byAug. lO.
DoF had estimated that the government
Ioses P24 billion annually in foregone per-
sonal income taxes fdr every IO0,OOO u$egis_
tered POGO workers.
In an Aug. t9 press briefing, PAGCOR an_
nounced that it will stop accepting new appli_
cations for offshorc gaminglicenses. pAGCOR
Chairperson Andrea D Domingo told report_
ers then that the moratorium could last until
the end ofthe year. POGOS in the countrynow
number 61. if the current three pending ap-
plications were to be approved.
The DoF said.in a separate press release
on Sunday that Mr. Dominguez mel with for-
mer top economic officials of the Executive
branch of governrnent as well as Ways and
Means committee chairpersons Senatorpia S.