The Bureau of Internal Revenue said Tuesday it lifted the closure order against Philippine offshore gaming operator Great Empire Gaming and Amusement Corp. after the latter agreed to settle P1.3 billion in tax liabilities.
BIR chief Cesar Dulay said in a statement that Great Empire’s total tax obligation was P1.3 billion. The firm offered to pay a down payment of P250 million and settle the balance in three months up to end of December in post-dated checks.
Dulay also said that Great Empire was required to update the withholding tax payments and the registration of its employees. The company reportedly has more than 8,000 employees in three facilities in Metro Manila and Zambales.
BIR deputy commissioner for operations group Arnel Guballa announced the lifting of the closure order.
“By virtue of the power vested in me under Section 115 of the National Internal Revenue Code of 1997 [as amended] and upon compliance of Great Empire Gaming and Amusement Corp. to comply with the requirement under Section 236 of the National Internal Revenue Code of 1997, order is hereby given lifting the closure of the business establishments of the abovementioned taxpayer,” Guballa said in a statement.
Guballa said the business establishments include the one located in Gateway Hub Bldg., Lot C-3, Active corner Humility Streets, SBGP Phase 1 in Subic Bay Freeport Zone; second floor, Aseana Hub, Bradco Avenue, Aseana City, Macapagal Blvd., in Baclaran, Paranaque City; and 5th to16th floors, Eastwood Global Plaza, E. Rodriguez Avenue, in Bagumbayan in Quezon City.
Great Empire’s operations was closed down by the BIR on Sept. 25 after the agency found out that the firm was violating tax laws in the country.
The BIR said the closure of the tax-dodging POGO was in compliance with the earlier directive of Finance Secretary Carlos Dominguez III to close down online gaming operations found to be violating Section 115 (b), in relation to Section 236 of the National Internal Revenue Code of 1997, as amended.
“Results of the investigation showed that GEGAC is not registered for VAT purposes violating the Section 108 vis-a-vis with Section 115 of the Tax Code as certified by the Revenue District Office 019—SubicBay Freeport Zone,” BIR said. The closure order was issued by Guballa.
Dominguez said in a message to Finance reporters that the number of foreign employees in Great Empire’s Eastwood location was around 8,100, “with a few hundred more in Parañaque and Subic.”
Dominguez earlier threatened to close down “as soon as possible” offshore gaming operations that were not complying with the country’s tax laws.
He said the crackdown would be led by the DOF, in partnership with other government agencies such as the BIR, Department of Labor and Employment, Department of Justice, Bureau of Immigration and Philippine Amusement and Gaming Corp.
The Chinese embassy urged the Philippine government in August to crack down on POGOs, saying several Chinese citizens were illegally recruited and hired in offshore gaming operations in the Philippines.
State-run Philippine Amusement and Gaming Corp. then stopped accepting new applications for offshore online gaming licenses.