For the first time since Philippine offshore gaming operators (Pogos) were allowed in the country, a Pogo licensee—Synchronization Anywhere For You Inc.—was ordered closed last week by the Bureau of International Revenue for failure to register and pay a franchise tax of more than P114 million.Until the Department of Finance (DOF) ordered the collection of income tax on the salaries of Pogo employees, Pogos’ tax obligations were limited to licensing fees and the 5-percent franchise tax on their gross gaming revenues.
The DOF brushed aside the solicitous concern raised by the Philippine Amusement and Gaming Corp., the regulatory authority of Pogos, that “overtaxing” them may discourage their continued operation and, in the process, deprive the government of billions of pesos in revenue.
With the expansion of Pogo operations, thousands of Chinese nationals have descended in the Philippines and brought with them peace and order issues, e.g., prostitution and violent enforcement of debt obligations, that often accompany gambling operations anywhere in the world.
On account of numerous criminal incidents involving Chinese nationals, the Philippine National Police had to create a special unit to deal with that problem and engage the services of Chinese interpreters to assist it in the interrogation of Chinese nationals who claim not to know how to speak English or Filipino.
Worse, some Chinese nationals caught violating traffic and no-smoking regulations had the temerity to hurl invectives at arresting police officers or physically attack them.
They should thank their lucky stars the media were around when they were caught; otherwise, they would have had an early reunion with their ancestors.Also, several Pogos have been found to have violated Philippine laws, such as failure to register their employees for tax collection purposes, forcing employees to work under inhumane conditions, operating outside their authorized area of operations, refusal to secure local business licenses or permits, and nonpayment of taxes.
Where is this gall or brazenness to disrespect Philippine regulations and resist law enforcement authorities coming from?
Part of this behavior may be traced to the administration’s unabashed expression of admiration for the Chinese government for its offer to extend financial assistance to the Philippines in its infrastructure program, but which, to date, has been given to only two projects.
In the face of that fawning posture, Pogo employees cannot be faulted for thinking that since the Philippines owes China a huge debt of gratitude for the promised aid, they have earned the right to thumb their nose on Philippine laws and be treated with kid gloves.
Aren’t vassals supposed to be deferential or submissive to their masters?
With regard to the Pogos’ violation of business and labor laws, those acts could not have been committed without the guidance or advice of their local business partners, lawyers or government officials.
For a share in the profits or payment of hefty fees, the “coconspirators” can point out the loopholes in the regulations or how a legal requirement can be skirted without catching the attention of the authorities. And if they’re caught, how to extricate themselves from the mess or whose palms should be greased to have the investigation stopped or the charges dropped.
A glaring example of government officials aiding in the violation of our laws by Pogo employees are some Bureau of Immigration officials who helped facilitate the entry of Chinese nationals into the country for certain sums of money through the so-called pastillas scheme.
For now, given the administration’s love affair with China, Pogos operate in the country like sacred cows. Whether or not they will be able to maintain that status after President Duterte’s term expires is a big question mark. INQ