COMMUNITY NOTICE: If you are having trouble in your account access, please do send us a message at [email protected] for assistance.

Majority of licensed Pogos failed to pay P50B in taxes in 2019 — BIR official Read more: https://ne

hellraiser2.hellraiser2. Registered User PEx Rookie ⭐

Majority of licensed Pogos failed to pay P50B in taxes in 2019 — BIR official

MANILA, Philippines — Majority of the 60 licensed Philippine offshore gaming operators (Pogos) failed to pay the government an estimated total of P50 billion in withholding income and franchise taxes in 2019, an official from the Bureau of Internal Revenue (BIR) told senators Tuesday.

During the Senate labor committee hearing into the influx of illegal Pogo workers in the country, Atty. Sixto Dy Jr. from the BIR Office of the Deputy Commission for Operations disclosed that all foreign-based Pogo licensees are not paying their franchise tax.

At present, there are 60 Pogos licensed by the Philippine Amusement and Gaming Corporation (Pagcor).

Of this number, 50 are online casino operators based abroad while 10 are Philippine-based.

“One hundred percent of the offshore-based licensees are not paying franchise tax. All of them,” Dy told the Senate panel.

“Pagcor collected P8 billion at least as regulatory fee…that’s only two percent (of the operator’s gross gaming revenue). If it’s franchise tax of 5 percent, that would be at least 17 to 18 billion,” he added.

Aside from the issues regarding the payment of franchise tax, Dy said the BIR was only able to collect P5 billion in 2019.

The Department of Finance (DOF) earlier projected the government withholding tax collection from Pogos at P2.5 billion or P3 billion per month.

“That’s almost P30 billion,” Dy pointed out.

Adding the total of the projected withholding and franchise tax collection, Dy said the BIR should have collected an estimated total of P50 billion from these online gaming operators in 2019.

He then said that the BIR plans “to go after” these operators who failed to pay their taxes to the government.

“Those who did not pay, the bureau intends to issue letters of authority to audit them,” he added.

For Pagcor’s part, its Vice President for corporate social responsibility group James Bondoc assured senators that they will also investigate the matter.


  • hellraiser2.hellraiser2. Registered User PEx Rookie ⭐

    Senate panel eyes POGO industry suspension over P50B tax deficiency

    MANILA - Philippine offshore gaming operations (POGOs) in the Philippines should be suspended after a Senate inquiry found that the industry committed several irregularities, including failure to pay at least P50 billion in taxes, a senator said Tuesday.

    The government only collected P5 billion of the P50 billion tax revenue expected to be generated from POGOs, Senate Committee on Labor and Employment chair Joel Villanueva told reporters after his panel's inquiry.

    "Klarong-klaro po na dapat pansamantalang itigil muna ito kung talagang naniniwala tayo na kapakanan talaga ng mas nakararami ang ating protektahan," he said.

    Most POGO foreign workers come to the country using tourist visas, but are still able to secure employment in POGO hubs and receive salaries without paying taxes, Villanueva said.

    "The fact that they don’t have the tax identification numbers (TIN) means they are not paying taxes. It means they are illegal," he said.

    The lack of regulation in the industry makes POGOS a "threat for money laundering," Villanueva said.

    Police officials also testified during the Senate inquiry that the rise of the POGO industry in the Philippines has led to a "spike in criminal activities."

    A separate Senate investigation found that special prostitution dens, hiring Chinese women and Filipino teens, have been set up specifically to cater to POGO workers.

    "Ito po ay sumasalamin lamang sa hindi maayos na pamamahala at patakaran ng ating mga ahensya para masiguro na maayos na mareregulate ang industriyang ito mula pa lamang sa pagpasok ng mga foreign workers," Villanueva said.

    The proposed suspension of POGO operations will only account for 0.04 percent of the economy, he said, citing data from the Department of Finance.

    The Senate panel is expected to file measures that will require POGO employees to process all labor permits in China before being allowed to work in the Philippines.

    "We need to scrutinize yung binibigyan natin ng alien employment permits... Paano natin nasisiguro na hindi ito kaya gampanan ng mga kababayan natin bago ito i-offer sa mga bisita, sa mga foreigners?" he said.

  • hellraiser2.hellraiser2. Registered User PEx Rookie ⭐

    Michael Yang, POGO’s secret kingpin: Ex-Duterte adviser revives Jack Lam’s Fontana casino into offshore gaming hub

    Is Chinese businessman Michael Yang Hong Ming a secret kingpin in the booming Philippine Offshore Gaming Operations (POGO) business?

    A Bilyonaryo source said Yang was allegedly the real power behind Xionwei Technologies Inc., one of 60 licensees awarded by the Philippine Amusement and Gaming Corp.

    Xionwei runs POGO call centers (serving offshore gamblers playing online casino in China) through seven sub-licensees:

    1) Oroone Inc. – Cagayan de Oro
    2) Invech Treasure Prcoessing Corp. – Bonifacio Global City
    3) Xin Hung Jin Chegn Ltd. Co. Inc. – Mactan, Cebu
    4) Van Gogh Business Process Outsourcing Inc. – Las Pinas, Pasay and Makati
    5) First Great Computer Technologies Inc. – Paranaque
    6) Shidaikeji Technology Inc. – Clark Freeport, Pampanga
    7) Big Emperor Technology Corp., in 10 locations – Pasay

    Shidaikeiji is Xionwei’s biggest POGO sub-licensee. It has 22 locations at the Clark Freeport Zone, specifically the Fontana Hot Spring Leisure Parks casino resort, used to be owned by Macau gaming tycoon Jack Lam.

    Lam, the former majority owner of Jimei International Entertainment, fled the country in December 2016 after President Rodrigo Duterte ordered his arrest after he was charged for hiring 1,316 illegal Chinese workers in a pre-POGO online casino Fontana and bribing Bureau of Immigration officials. Pagcor has revoked Lam’s casino license in Fontana and Fort Ilocandia.

    Xionwei has thousands of Chinese employees with an estimated 300 to 400 people occupying every 1,000 square meters of floor space.

  • _knorr__knorr_ 2017 Person of the Year PEx Influencer ⭐⭐⭐
    edited February 13

    .                                     .

  • hellraiser2.hellraiser2. Registered User PEx Rookie ⭐

    ‘Michael Yang’ as protector of illegal POGOs?

    “Tsismis” was how Malacañang described the allegation of a Taiwanese woman rescued from an illegal Philippine offshore gaming operations (POGO) firm that a government official named “Michael Yang” was protecting her former employers.

    Coincidentally, a Chinese national also named Michael Yang once served as President Rodrigo Duterte’s economic adviser. Yang was tagged by former anti-drug operative Eduardo Acierto in the illegal drug trade in March last year.

    On Thursday, Presidential Spokesperson Salvador Panelo told reporters that complaints against the POGO company should be formally lodged so her concerns can be properly addressed.

    “They should file a formal complaint. Hindi naman puwedeng papadaanin nila sa media. If there is a victim, then [Senator Risa Hontiveros] should help in giving that victim justice,” said Panelo.

    Last Wednesday, Hontiveros, who chairs the Senate Committee on Women, presented 23-year-old victim Lai Yu Cian who claimed that she was trafficked into the Philippines to work for a Chinese-run POGO company in Makati.

    She said that she was treated like a slave by her former employers, one of whom she accused of sexually assaulting her.

    Meanwhile, Panelo said the Duterte administration will run after POGOs that have tax deficiencies. The Bureau of Internal Revenue said POGOs owe the government P50 billion in unpaid taxes.

    “Very clear naman si Presidente roon eh, no sacred cows in this government. You owe the government, we’ll run after you. The way he did sa Philippine Airlines… saan pa, sa Mighty Cigarette and now the water concessionaires. Lahat iyon, walang sinisino si Presidente eh, basta nagkamali ka, mayroon kang transgression, ah hindi ka palulusutin,” he also said.

  • IronHandofJusticeIronHandofJustice Member PEx Guru 🎖️🎖️
    While a typical analyst job in BGC will have you pay around 10K or more in income taxes PER month. 

    Those folks in BIR should lick our shoes sa totoo lang. Wala silang karapatan magsungit sa atin kung may kailangan tayo. 
  • _knorr__knorr_ 2017 Person of the Year PEx Influencer ⭐⭐⭐

    .                                               .
  • _knorr__knorr_ 2017 Person of the Year PEx Influencer ⭐⭐⭐

    .                                         .

Leave a Comment

BoldItalicStrikethroughOrdered listUnordered list
Align leftAlign centerAlign rightToggle HTML viewToggle full pageToggle lights
Drop image/file