Shuttered Pogo operator now back in business

MANILA, Philippines — A service provider for Philippine offshore gaming operators (Pogos) has resumed operations after paying an initial P250 million of its P1.3-billion tax liability.

The Bureau of Internal Revenue (BIR) lifted its closure order on Great Empire Gaming and Amusement Corp. (Gegac) on Sept. 27 for the firm’s three locations in Quezon City, Parañaque City and the Subic Bay Freeport Zone, a letter signed by Deputy Commissioner Arnel S.D. Guballa showed.

Citing a report from Internal Revenue Commissioner Caesar Dulay, Finance Secretary Carlos Dominguez III told reporters that Gegac was allowed to operate again starting Sept. 30, but was “required to update withholding tax payments and register its (over 8,000) employees.”

Of its P1.3-billion tax deficiency, Gegac “offered to pay P250 million (outright) and the balance in three months up to end-December in postdated checks,” Dulay said.

The company was shuttered because it established the bulk of its operations in Quezon City despite being registered in Subic where it was supposed to enjoy preferential tax treatment in the freeport zone.

Gegac was the first Pogo service operator shut down under the BIR’s “Oplan Kandado” program.