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Workers of Philippine Offshore Gaming Operations May Have Evaded Yearly Income Taxes

The Philippine interagency task force is to go after foreign national employees of the Philippine offshore gaming operations (POGO) for tax purposes. The Department of Finance (DOF) revealed on March 25th, that a thorough list of the workers will be completed by the end of the week, March 29th.

As revealed by the DOF, the task force is to be looking at the Philippine offshore gaming operations, because POGOs’ foreign employees are suspected of evading yearly income taxes which, according to a news statement of the Department, could amount to about PHP22 billion ($420 million). The country’s Finance Department further revealed that the competent interagency task force has already taken measures to identify such employees and the complete list is to be ready by the end of the week.

Carlos G. Dominguez III, the Finance Secretary, has explained that another meeting is set to be held on March 29th, at which the list and a number of additional lists prepared by all the other agencies providing employment to foreign citizens are to be reviewed. Mr. Dominguez III also noted that the lists that are expected to be tabled at the meeting at the end of the week.

Chinese Gambling Operators May Have Problem Finding New Workers

A number of measures against the foreign workers who are found to have evading their annual income taxes, after the members of the interagency task force discovered some gaps an/or inconsistencies in the respective figures which they had originally submitted.

As further explained by the Finance Secretary, the number of Philippine offshore gaming operations’ workers who could be involved in the income tax evasions could exceed 100,000.

At the meeting which took place at the beginning of the week, BIR Deputy Commissioner Arnel S.D. Guballa revealed an initial list of 64 out of 205 service providers, according to which they employ an overall of 33,000 foreign workers, which makes an average of 515 per service provider.

Based on Chinese reporting, the average salary of foreign workers engaged in the offshore gaming operations of the country is estimated at about PHP78,000 ($1,500) on a monthly basis. At that rate, such employees would most likely owe a tax of PHP18,750 ($350) a month. However, the local authorities have shared their concerns that a large number of such workers could have also found a way to evade their obligations to pay their annual income taxes.

Reportedly, it is the Chinese gambling operators in the Philippines that might have a massive brain drain problem. If they are unable to hire new employees for their services and in case that they lose their current staff, many would have no other choice but to seize operations on the territory of the Philippines, or even worse, start offering their services illegally.



 Author: Harrison Young

Harrison Young is an experienced writer, who started his career almost 8 years ago. Prior to joining our team at CasinoGamesPro, he worked as an editor for a small magazine.
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