Killing the Goose

[scott h]

 

https://www.msn.com/en-ph/news/national/two-pogos-file-for-cancelation-of-licenses-13-others-close-down/ar-BB16ox5V?ocid=msedgntp

The government is getting greedy for tax revenue, and are ending up chasing not only a souse of tax revenue away but jobs for Filipinos also.  

two  Philippine offshore gaming operators (POGOs), including the Macau-based junket operator Suncity Group, have filed for a cancellation of their offshore gaming licenses in the Philippines.

According to Izzy Lee’s Monday report on “Stand For Truth,” the Suncity Group will transfer its POGOs to a different country.

 

Thirteen other POGO service providers have so far shut down.

The Philippine Amusement and Gaming Corporation (PAGCOR) said out of the 60 licensed POGOs, only 13 have secured clearance from the Bureau of Internal Revenue and were given authorization to resume operations.

PAGCOR expects only 40 POGOs would remain in the country before the year ended.

In order to obtain tax clearance, POGOs are required to pay a 5-percent franchise tax aside from other fees.

Citing a 2018 legal opinion by the Office of the Solicitor General, POGOs insisted that they did not have to pay the franchise tax since they were not based in the Philippines.

“If we are to be very very technical about this, POGOs should be subject to payment of 5 percent franchise tax precisely because they operate here through PAGCOR,” legal expert Edward Chico said.

Meanwhile, PAGCOR was worried about the job losses that would affect more than 1,000 Filipino POGO employees.

“I-ensure lang natin dito na ‘yung manggagawa dito, ‘pag nagsara ‘yung POGO establishments ay maibigay po yung karampatang separation pay,” Labor Assistant Secretary Dominique Tutay said.

“Kung may hindi po nasunod sa mga patakaran ng paggawa, maaari namang mag-file ng complaint ang ating mga workers,

[OnMyWay]

Good riddance!  Short term pain, long term gain for the Philippines, IMHO.

We are having a lot of problems with the POGO staff houses and employees in our neighborhood.  Yesterday, 2 AM, one of the employees, probably management level, was dead drunk and crashed into two parked cars after side-swiping another one.  Tried to run away and his staff house was only a few blocks away.  Other POGO houses in are area are constant problems.  Smoking, trash.

I'm not sure if I mentioned this before, but the POGOs basically took over the tall condos in Cubi for employee housing.  Not sure of the situation now, but pre-Covid, constant noise, drinking, smoking and prostitution.  Complaints from the nearby neighbors finally got some of the prostitution toned down.  One neighbor had shown pictures of cigarette butts, trash and used condoms strewn about their sidewalks.  

[scott h]

5 hours ago, OnMyWay said:

Good riddance!  Short term pain, long term gain for the Philippines, IMHO

I understand the sentiment, but you live in Subic.  Its been what over 30 years since they closed the bases. How many locals really regret that decision now?

[OnMyWay]

5 hours ago, scott h said:

I understand the sentiment, but you live in Subic.  Its been what over 30 years since they closed the bases. How many locals really regret that decision now?

I don't think that is an apples to apples comparison.  Too tired to get into the reasons why.  

[fillipino_wannabe]

Not a big fan of them but they've got a point to be fair, taxing a casino 5% of every bet is never going to work, their profit margin is probably 5%

Edited July 7, 2020 by fillipino_wannabe

[Mike J]

5 hours ago, fillipino_wannabe said:

Not a big fan of them but they've got a point to be fair, taxing a casino 5% of every bet is never going to work, their profit margin is probably 5%

I think the 5% tax is not on the bet amount, but rather on what the casino earns from each bet?  So if the casino is keeping a portion of each bet, the  franchise tax would be 5 % of what ever the POGO keeps.  

[Joey G]

I'm "betting" they figure a way to staying in business and pass the cost on to the customer... anyone want to give odds on that? 

[scott h]

39 minutes ago, Joey G said:

anyone want to give odds on that? 

I will take that bet Joey, there have been articles already about them cancelling their leases on office space. 

here is one i found after a quirk search 

https://philnews.ph/2020/06/30/pogos-leaving-philippines-without-paying-taxes-shouldnt-be-allowed/

and another

https://mb.com.ph/2020/07/01/palace-pogos-leaving-for-cambodia-amid-order-to-settle-taxes/

Edited July 8, 2020 by scott h

[graham59]

I will also add a 'good riddance'.  

 

[RBM]

19 hours ago, graham59 said:

I will also add a 'good riddance'.  

 

As much as i agree with the sentiments this is not small money for the country.

According to the Philippine Amusement and Gaming Corporation, POGOs have contributed P94.7 billion to the Philippine economy.