Connect with us

Hi, what are you looking for?

Economy

Fast track sought for measure closing POGO tax loophole

THE House of Representatives needs to fast-track a measure closing a loophole in a tax law authorizing the collection of a 5% franchise tax from Philippine Offshore Gaming Operators (POGOs), a senior legislator said.

Representative Jose Maria Clemente S. Salceda of Albay issued the statement after the Supreme Court granted the petition of 14 foreign-based POGOs to prevent the Bureau of Internal Revenue (BIR) and the Department of Finance from collecting the franchise taxes from POGOs, as outlined in Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II). The tax would have raised billions in additional revenue to boost the treasury for pandemic measures.

“They can’t say they are Chinese operations, because gambling is illegal in China. They are Philippine operations. And my bill closes the ambiguity by stating in black and white that they are in fact doing business in the Philippines,” he said in a statement.

Mr. Salceda, chairman of the House committee on ways and means, last year filed House Bill No. 5257, which seeks to impose a 5% franchise tax on all POGOs on gross receipts derived from gaming operations.

The measure also proposes a 25% withholding tax on foreign POGO workers with a minimum threshold of P600,000 per annum. The proposed tax rates would raise a total of P45 billion for the national government, Mr. Salceda said.

The proposed legislation should “sail smoothly” this month since the two chambers of Congress “both agreed on the POGO taxes in Bayanihan II,” Mr. Salceda said.

“My bill would make it a case of tax evasion to (neglect) reportorial requirements. There’s a very thin case for slapping POGOs with tax evasion in the current law.”

The BIR earlier reported that only 10 out of 60 licensed POGOs in the country paid tax. The Philippine Amusement and Gaming Corporation (PAGCOR) in mid-June last year confirmed that some POGO firms have left the Philippines due to the government’s restrictions on the industry and the impact of the coronavirus pandemic on business activity.

The gaming regulator has been pushing for the resumption of POGO operations during the quarantine. — Kyle Aristophere T. Atienza

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

LIMA — Dina Boluarte became Peru’s first female president on Wednesday amid a political maelstrom when her predecessor and former boss Pedro Castillo was...

Economy

TOKYO — Japan’s economy, the world’s third-largest, shrank less than initially estimated in the third quarter, bolstering a view that it is slowly recovering...

Economy

WASHINGTON — US Securities and Exchange Commission (SEC) Chair Gary Gensler said that companies that help facilitate transactions in the cryptocurrency market should come...

Economy

Twitter owner and Tesla boss Elon Musk briefly lost his title as the world’s richest person on Wednesday, according to Forbes, following a steep...

Economy

BERLIN — The founder of Russia’s only LGBTQ+ museum said he was forced to close its doors on Wednesday after President Vladimir Putin signed...

Economy

Philippine lawmakers are looking to tap central bank profits to seed a proposed sovereign wealth fund, after an earlier plan to use pension funds...

You May Also Like

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.