BIR shuts down Philippines’ first POGO licensee over failure to pay franchise tax
The Bureau of Internal Revenue (BIR) has shut down the operations of the first Philippine Offshore Gaming Operator (POGO) to be given a license by the government after it failed to pay the five-percent franchise tax.
In a statement, the BIR said Task Force POGO enforced a mission order against Synchronization Anywhere For You Inc. (SAFYI) upon the directive of Internal Revenue Deputy Commissioner Arnel Guballa.
SAFYI is located at Eastfield Center, Macapagal Avenue, MOA Complex, Pasay City.
SAFYI is the “first POGO operator/licensee” closed by the BIR for failure to pay the five-percent franchise tax due on its gross gaming receipts for taxable year 2019 amounting to over P114 million, inclusive of incremental penalties, the BIR said.
A POGO licensee is a firm that operates the gambling business and taps service providers to provide technical services such as live-streaming of games to their offshore, usually Chinese, clients.
Last year, the BIR served closure orders against three POGO service providers namely Altech Innovations Business Outsourcing, Great Empire Amusement Corp., and New Oriental Club88 Corp.
As provided under PD No. 1869 and circularized through Revenue Memorandum Circular (RMC) No. 102-2017, the entire gross gaming revenue or earnings from gaming operations of franchise holders shall be subject to a franchise tax of five percent, in lieu of all other taxes. —NB, GMA News