Dominguez says POGO non-payment of taxes ‘probably true’

The Department of Finance (DOF) is now looking into claims that only two Philippine Offshore Gaming Operator (POGO) firms have paid taxes as a requisite to resume operations, but it said such claims are "probably true."

According to Finance Secretary Carlos Dominguez III, personnel are now looking deeper into such claims made by Senator Joel Villanueva.

"We are conducting investigations of those allegations. It's probably true, but you know, also because of the lockdown, our people cannot really go around so much eh, but we are monitoring," Dominguez said during the Kapihan sa Manila Bay virtual briefing Wednesday.

He was responding to Villanueva's claims that only two POGOs have paid franchise taxes, and that no new firms have been added to the list.

"Until now, I was told wala pa ring nagbabayad na bago. Wala pa rin, zero pa rin. So, it means dapat hindi sila mag-resume," said Villanueva.

According to Dominguez, personnel of both the Bureau of Internal Revenue (BIR) are now working to address issues, along with representatives from the Bureau of Customs (BOC).

"It's not that (POGOs) only we're monitoring. We're also monitoring the illegal illicit cigarette factories," he said.

"We've closed down several warehouses, we've closed down one big factory there in Isabela, a big one, so we are doing it. However, because of the lockdown, our people cannot go around so much," added Dominguez.

The POGO industry was allowed to partially resume business in May, provided that they settle their unpaid taxes and follow strict COVID-19 protocols.

Just last week, however, the BIR said legal issues are hampering the collection of franchise taxes from POGOs. The firms have claimed they should not be subjected to such taxes as they are non-resident corporations.

For its part, the Accredited Service Providers Association of PAGCOR (ASPAP), last week said its members paid the required regulatory fees and the corporate and withholding taxes of their workers. 

Revenues from POGOs

At the same forum, Dominguez said government revenues from POGOs should reach as much as P20 billion per year but collections only reached P6 billion in 2019.

Dominguez said collections from POGOs only share a small part in government revenues. "We know that we can probably get close to P20 billion a year, but we are not getting it. Last year we got P6 billion." 

He said collections from POGOs amounted to P6 billion in 2019, and P1 billion in the years prior to that. — RSJ, GMA News