Dominican betting representatives estimate that the tax increase would lead to 75 percent illegality.
Dominican Republic.- From the National Association of Sports Betting of the Dominican Republic, they described the Selective Consumption Tax on gambling as "unfeasible," set at 16 percent. Representatives of sports betting estimate that thanks to this new tax, informality would increase from 50 to 75 percent.
In this regard, Jefrey Espinal, vice president of the Sports Betting Association, completely rejected the tax proposed in the Government's Fiscal Reform initiative.
According to the local site N, Espinal estimates that it would be more convenient if the authorities apply Law 139-11 on Tax Reform more rigorously, thus charging tax evaders and regulating the entire gambling sector. Espinal estimates that informality is around 50 percent and with greater control, the authorities would manage to collect more.
“The 16 percent Selective Consumption Tax on the gambling sector, which is not applied anywhere else in the world, would bankrupt our sector,” Espinal assured, who went to the National Congress to express his rejection of the 16 percent tax on gambling, established in the Fiscal Reform presented by the Dominican government on October 7.
The representative of the Dominican sports betting estimates that applying this tax would lead to a decline in games and consequently, the goal of raising more would not be achieved.
See also: Circe Almánzar asks for online gaming to be regulated in the Dominican Republic: "It could be a very important source of income for the government"
The Dominican government, through the Minister of Finance, Jochi Vicente, announced on Monday, October 7, the details of the fiscal reform or modernization. According to the official, the goal of the reform is "to meet the demands of the citizens concerning basic services, which also suggests an increase in public spending."
The Government reported that with the proposed fiscal reform presented this Monday, it aims to increase collections by RD$122,486.6m, equivalent to 1.5 percent of GDP.
The proposal includes a new selective tax on gambling, aiming to collect RD$1,512m (USD24.7m). Also, the Government proposes that from the reform, the exemption on the importation of gambling machines and devices would be eliminated. Moreover, the proposal establishes that the maximum withholding on prizes or winnings obtained in gambling would increase from 25 to 27 percent.
PAOCC director Winnie Quidato says some operators are disguising themselves as business process outsourcing companies.
The Philippines.- Presidential Anti-Organized Crime Commission (PAOCC) director Winnie Quidato has told the Senate Committee on Women, Children, Family Relations and Gender Equality that some offshore gaming operators continue operating in the country disguised as business process outsourcing (BPO) companies to evade the ban issued under Executive Order (EO) 74.
“The big offshore gaming companies that we have raided before or that existed before, we see them breaking down into smaller groups. Some are even branding themselves now as BPOs,” Quidato told the panel during the last public hearing on illegal activities linked to offshore gaming operators. He said he hoped such “guerrilla offshore gaming operators” would not affect “the good image that BPOs have established in the country.”
See also: Philippine president says no new law needed following offshore gaming ban
Senator Risa Hontiveros also emphasised the importance of this “because BPOs, like the remittances of our OFWs, BPOs are actually one of the top revenue generators for the government and for the economy.”
Quidato said that while previously thousands of employees may have worked at a single offshore gaming operator, workers are now in smaller groups of 10 to 20 people per operation. “Just like what we found in Parañaque when we raided the Parañaque group, we discovered that they have occupied 45 houses within the subdivision. That’s what’s happening now. They are breaking down into smaller groups.”
He said that due to enforcement in Luzon, some have started to operate in the Visayas and Mindanao regions. The PAOCC plans to meet with relevant government agencies.
Jesus Crispin Remulla, secretary of the Department of the Interior and Local Government (DILG), has called on mayors to regularly check businesses to ensure that they are not operating as illegal offshore gaming operators.
During a Commission on Appointments hearing, Remulla said some illegal offshore gaming operators had applied for permits under the guise of running legitimate businesses such as resorts or restaurants. He said the authority to issue, suspend, or revoke business and occupancy permits was a key tool in combating such illicit activities. Based on the Local Government Code of 1991, a mayor has the power to suspend or revoke licences and permits for any violation of the law.
Remulla noted an incident in Lapu-Lapu City, where an alleged restaurant was exposed as a front for offshore gaming operations.
