THE gaming regulator said online gaming firms that evade taxes could face cancellation of their licenses and labor inspections, among other measures.
The Philippine Amusement and Gaming Corp. (PAGCOR) said in a statement Monday that Philippine Offshore Gaming Operators (POGOs) that are not complying with tax rules could face “the imposition of interest on outstanding arrears, forfeiture of performance bonds, imposition of demerits/administrative sanctions and charging of cash penalty, cancellation of license.”
PAGCOR Chairperson and CEO Andrea D. Domingo said the regulator has issued letters to all POGOs and service providers seeking their support for the Department of Finance’s (DoF) crackdown on POGOs that are not remitting taxes withheld from their foreign workers.
Meanwhile, the Department of Labor and Employment’s (DoLE) Bureau of Local Employment (BLE) director Dominique Rubia-Tutay said her agency will be inspecting companies for compliance with immigration, work permit and tax rules.
“We will validate and inspect their presence and their work in the company and then check if they’re compliant on immigration, work permits and also taxation,” she told reporters after the DoLE budget hearing in the Senate on Tuesday.
Ms. Tutay said that among the 177 POGO service providers inspected as of June, 8,371 foreign workers were found to be working without Alien Employment Permits (AEPs), accounting for 20% of the sector’s work force of 41,742.
Of those with no work permits, only 1,693 foreign workers were able to comply within a given deadline.
She estimates that an additional 6,678 foreign workers could be working without AEPs. — Beatrice M. Laforga
