Duterte gives POGOs ‘3 days’ to settle tax liabilities

FILE: President Rodrigo Roa Duterte delivers his speech during his visit to the Taguig City Center for the Elderly on November 21, 2019. ALFRED FRIAS/PRESIDENTIAL PHOTO

MANILA — President Rodrigo Duterte on Friday imposed a deadline for delinquent Philippine offshore gaming operators (POGOs) to settle their tax liabilities.

“I’m giving you at least three days. That’s good enough, fair enough. Do you think it’s fair, three days? What do you think as a Filipino? Three days would be a kind of parang (perhaps) a good grace period for them,” Duterte said in an exclusive interview with CNN Philippines.

He warned that those who would snub his order will face sanctions.

“They are now ordered to register sa BIR at kumuha ng tag number. Now, I’m telling them, POGOs — hindi lang ito Chinese but Filipino, Filipino-Chinese — you better settle that utang (They are now ordered to register with the Bureau of Internal Revenue and get a tag number. Now, I’m telling them, POGOs – these are not only Chinese but also Filipino, Filipino-Chinese — you better settle those tax liabilities),” Duterte added.

The Department of Finance (DOF) earlier lamented the slow pace of collection of withholding income taxes from POGOs, despite the issuance of 130 demand letters to firms with tax liabilities amounting to PHP21.62 billion.

Latest data from the BIR revealed that the bureau has so far collected PHP1.63 billion in withdrawing taxes from POGOs from January to August this year, after collecting PHP175 million in 2017 and PHP579 million in 2018.

The DOF estimates PHP2 billion in withholding taxes from foreigners working in the POGO industry.

The BIR has already shut down the operations of tax-evading POGO firms Altech Innovations Business Outsourcing, Great Empire Gaming and Amusement Corp., and New Oriental Club88 for unpaid taxes.

Duterte said he would not tolerate these POGOs’ failure to pay the right amount of taxes to the government.

“Sinasabi ko na sa inyo, huwag ninyong lokohin ang Pilipino kasi ang Pilipino hindi luko-luko ‘yan (I am telling you. Do not fool Filipinos because Filipinos are not fools),” he said.