POGO firm reopens after pledging to settle tax arrears

MANILA, Philippines — Padlocked offshore gaming operator Great Empire Gaming and Amusement Corp. (GEGAC) is back in business after making a commitment to settle P1.3 billion in tax deficiencies to the government, according to the Bureau of Internal Revenue.

In an order issued last Sept. 27, Internal Revenue Deputy Commissioner Arnel Guballa lifted the closure order against Great Empire, days after the BIR closed down the company’s offices in Quezon City, Aseana City, Parañaque, and Subic Bay Freeport Zone for violations against the National Internal Revenue Code.

Internal Revenue Commissioner Caesar Dulay said Great Empire was allowed to operate again after it agreed to pay its delinquencies amounting to P1.3 billion in different tranches.

He said the first payment worth P250 million was made on Monday, while the remaining balance is payable until December.

 “(The company) offered to pay P250 million and balance in three months up to end-December in post-dated checks. I approved the recommendation of the POGO Task Force and BIR received payment of P250 million (last Sept. 30),” Dulay said in a text message forwarded by Finance Secretary Carlos Dominguez.

In addition, Dulay said Great Empire was required to register its employees and to properly withhold and remit their income taxes.

Last Sept. 25, authorities from the BIR and the Quezon City police raided Great Empire’s office in Libis, Quezon City where it served the closure order against the company. Simultaneous operations were conducted in its Subic and Parañaque branches.

Guballa said this operation marked the start of the BIR’s enforcement activities against unregistered POGO service providers, in compliance with Dominguez’s orders.

According to the BIR, the POGO service provider was not registered with the bureau for value added tax (VAT) purposes, in violation of Section 108 vis-a-vis Section 115 of the National Internal Revenue Code of 1997.

Great Empire employs around 8,100 workers in their Quezon City branch, while the Paranaque and Subic branches are hiring a few hundred more. Guballa said most of these employees are Chinese nationals.