{"id":237832,"date":"2019-11-19T19:35:12","date_gmt":"2019-11-20T00:35:12","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=237832"},"modified":"2019-11-19T19:35:12","modified_gmt":"2019-11-20T00:35:12","slug":"palace-sides-with-dof-pogos-can-be-taxed","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/11\/19\/palace-sides-with-dof-pogos-can-be-taxed\/","title":{"rendered":"Palace sides with DOF: POGOs can be taxed"},"content":{"rendered":"
\"\"<\/a>
Presidential Spokesperson Salvador Panelo made this remark following conflicting statements made by Solicitor General Jose Calida and Finance Secretary Carlos Dominguez III on the taxability of the Philippine Offshore Gaming Operators (POGOs) licensees and service providers. (File Photo<\/a>: Office of the Presidential Spokesperson\/Facebook<\/a>)<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0— The Philippine government can tax offshore gaming firms in the country, Malaca\u00f1ang said on Tuesday, insisting that the state cannot be denied of its authority to tax.<\/p>\n

Presidential Spokesperson Salvador Panelo made this remark following conflicting statements made by Solicitor General Jose Calida and Finance Secretary Carlos Dominguez III on the taxability of the Philippine Offshore Gaming Operators (POGOs) licensees and service providers.<\/p>\n

\u201cWhile the matter is being studied at length by the DOF (Department of Finance), what is clear is that the State cannot be denied its right to collect on all applicable taxes on any entity or individual,\u201d Panelo said in a statement.<\/p>\n

Panelo said POGO workers\u2019 \u201ccompensation, salaries or wages for the services they render here are considered \u201ctaxable income\u201d under Section 23 (A) & (D) of the National Internal Revenue Code.<\/p>\n

\u201cFor POGOs that are domestic corporations, they are covered by Section 23 (E), Chapter II of the National Internal Revenue Code (NIRC) and their income shall be subjected to Philippine taxes regardless of whether the same was derived from a source outside of the Philippines,\u201d Panelo said.<\/p>\n

\u201cAs for those POGOs considered as foreign corporations, they too are taxable but only for income which they derived from sources within the country. This is pursuant to Section 23 (F), Chapter II of the NIRC,\u201d he added.<\/p>\n

The Palace official emphasized that the DOF has the primary mandate to formulate, institutionalize, and administer fiscal policies.<\/p>\n

He said the discretion of the DOF, alongside the Bureau of Internal Revenue (BIR), carries \u201csignificant weight on matters of taxation.\u201d<\/p>\n

\u201cWith this, we trust that the DOF, together with the BIR, has the competence to evaluate the respective charters and operations of these entities in order to subject them to Philippine taxes in accordance with the law,\u201d Panelo said.<\/p>\n

Quoting the Supreme Court in a plethora of cases, Panelo said “Taxes are the nation\u2019s lifeblood through which government agencies continue to operate and with which the State discharges its functions for the welfare of its constituents.”<\/p>\n

Panelo, also Chief Presidential Legal Counsel, explained that the State has the authority to tax in order to defray the expenses of the government.<\/p>\n

He maintained the Duterte administration will not be \u201cstymied nor estopped by technicalities caused by the exploitation of developing technologies in collecting what is due the government.\u201d<\/p>\n

Meanwhile, Panelo acknowledged that Calida\u2019s statement was an opinion given to the Philippine Amusement and Gaming Corporation (Pagcor) based on the \u201csource of income\u201d principle under the country\u2019s tax code.<\/p>\n

Calida said the test of taxability \u201cis the source and correspondingly, the source of an income is that activity which produced the income.\u201d<\/p>\n

Dominguez, on the other hand, said because POGOs are providing services to their counterparts in the Philippines, they are subject to income tax.<\/p>\n

Panelo said Calida\u2019s remark is subject to change, depending on the circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0— The Philippine government can tax offshore gaming firms in the country, Malaca\u00f1ang said on Tuesday, insisting that the state …<\/p>\n","protected":false},"author":44,"featured_media":207213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,95],"tags":[],"class_list":["post-237832","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","category-news-ph","mauthors-azer-parrocha","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/237832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=237832"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/237832\/revisions"}],"predecessor-version":[{"id":237833,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/237832\/revisions\/237833"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/207213"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=237832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=237832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=237832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}