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April 19, 2024

CEZA locators ordered closed for non-payment of tax

A number of locators at the Cagayan Export Economic Zone (CEZA) and their support services providers have been shut down temporarily by revenue officials for reasons of non- registration.

These were all POGO or Philippine offshore gaming operators duly licensed by CEZA to engage in interactive gaming that include the Asian BGE Limited; Fine Day Holdings Limited; Hana Talk Inc.; NCGAC Limited; NEO Kingdom Limited; Oak Tree Services, Limited; Succeed Asia Limited; Wealthy Leap; and WUS Technologies Holdings Limited.

Their licensed support service providers, all Cagayan Special Economic Zone and Freeport (CSEZFP) registered enterprises, were likewise suspended that included Alpha Fortune Management Solutions, Inc.; Empire Group International & Management Tech Services, Inc.; Hi-Source Services, Inc.; Kui Business Services, Inc.; Lyndhurst Services, Inc.; Pacific Solutions Management; Rimrock ICT Services, Inc.; Succeed Asia Ventures, Inc.; and Top Asia Leisure and Entertainment Corporation.

They were read Section 2 of Republic Act 11590 or the POGO Law where an offshore gaming licensee is considered engaged in doing business in the Philippines and therefore required to register with the BIR.

Under Section 5 of Revenue Regulations (RR) No. 20-2021, non-registration of POGOs with the BIR is a fraudulent act, which carries the penalty of closure, including the closure of all their accredited service providers.

The POGO licensees and service providers will remain suspended until the BIR registration requirements and other tax regulations are complied with and the corresponding deficiency taxes and penalties paid.

“May these closure operations against unregistered POGO entities, along with our other tax enforcement activities like filing of tax evasion cases and intensified tax audit and investigation, serve as a deterrent for those who would commit tax violations. We urge all taxpayers to comply with the Bureau’s registration requirement, filing and payment of taxes, and other tax obligations in order to avoid facing business closure, penalties and possible criminal charges before the court,” Commissioner Caesar R. Dulay said.