Manila Bulletin
Philippines
BIR should go after POGO service providers, third party auditor—Gatchalian
Philippines
BIR should go after POGO service providers, third party auditor—Gatchalian
BIR should go after POGO service providers, third party auditor—Gatchalian
Published Mar 26, 2023 05:45 am
The Bureau of Internal Revenue (BIR) should go after the third party auditor for the Philippine Offshore Gaming Operators (POGO) and their service providers to hold them accountable for tax liabilities.
Sen. Sherwin Gatchalian, chairman of the Senate Committee on Ways and Means, said this is also part of the recommendation of the “chairman’s report” following its inquiry into the social costs and liabilities of the POGO industry to the country.
Based on the information that the POGO industry declare to the Philippine Amusement and Gaming Corp. (PAGCOR) and what they declare to the BIR, Gatchalian said the size of the difference is almost half of the discrepancy.
“It means that they pay more to PAGCOR because PAGCOR appears to be the regulator but they pay less to the BIR,” Gatchalian pointed out in a DWIZ interview.
“And it turns out that they owe almost P2-billion to the BIR. And BIR itself admitted, the BIR sent us a letter and they said they admitted based on their investigation that there is tax evasion happening in POGOs,” he pointed out.
“So that's the other one, the crime of kidnapping and illegal detention is different, there is another crime, tax evasion, improper payment of taxes,” he said.
Gatchalian acknowledged it would be difficult for the government to go after each POGO company since they have no property or bank accounts in the Philippines that can be garnished, since most of them have their bank accounts abroad.
“So one of our recommendations is for the BIR to go after the POGO, through their service providers as well as the third party auditor who is supposed to protect our interest, but who also became part of the crime that happened,” the senator said.
“So one of our recommendations is for the BIR to go after those who do not pay taxes,” he stressed.
It is also necessary, Gatchalian said, for the BIR to go after the Global ComRCI, the third party auditor for the POGO industry even after the PAGCOR has terminated its contract with them.
The Senate panel, he said, has found that PAGCOR awarded Global ComRCI with a contract based on a spurious bank certificate.
A separate blue ribbon investigation into the alleged anomalous contract between PAGCOR and Global ComRCi is now pending in the Senate.
“And I am confient that our President will accept the recommendation of the panel. Because the economic managers are the first to say that this (POGO industry) is not good for the image of our country and that our country will not be quiet, we ourselves, we as citizens of our country, we will not have peace of mind while that is here,” he stressed.