Under the table tax payments cause new controversy for Philippines POGOs

Some Philippine Offshore Gambling Operators (POGOs) have been allowed to resume operation, but accusations quickly came that they hadn’t met their tax obligations. As several politicians and bureaucrats fumbled over the matter, Foreign Affairs Secretary Teodoro Locsin, Jr. has revealed that payments were made “under the table,” causing new calls for investigation.

“The tax-evading POGOs did pay out as you must suspect but under the table which puzzled them. Usually they line up in a revenue office and pay up but this was special: collector whose affiliation to any department was kept a mystery turned up himself like home pick up,” Locsin said.

The Philippine Amusement and Gaming Corporation (PAGCOR) had previously confirmed that 11 POGOs had received clearance to reopen, a privilege that was to be reserved only for firms that had met all of their tax obligations. That news was met by claims from men like Senator Joel Villanueva that none of the POGOs had actually paid their taxes.

The mystery of who collected the payments, and who they’re working with, is now the hot topic of debate. Both the senate and the Bureau of Internal Revenue (BIR), the agency that should be collecting the taxes, are being called on to open investigations. “The statement of Sec. Locsin confirms the illegal activity of POGOs in the country. If they are not paying taxes in BIR, then they are not paying taxes,” said Villanueva, an opponent of POGOs.