Manila: The Bureau of Internal Revenue (BIR) filed a PHP2.23-billion tax evasion case with the Department of Justice (DOJ) against offshore gaming operator Hongsheng Gaming Technology Inc. for allegedly underdeclaring income and failing to declare and pay correct value-added and withholding taxes.

According to Philippines News Agency, the BIR stated that the case, filed on August 6, is part of the agency's strengthened enforcement efforts against tax evasion. The investigation, covering the years 2021 to 2023, revealed that Hongsheng significantly underdeclared its income, misreported value-added tax (VAT) liabilities, and failed to remit required withholding taxes for foreign employees.

The BIR reported that records from various government agencies showed notable discrepancies between Hongsheng's declared revenues and the information in official records. This resulted in substantial deficiencies in income tax, VAT, and final withholding tax liabilities.

BIR Commissioner Charlito Martin Mendoza emphasized the agency's commitment to protecting compliant taxpayers from tax evasion. "Honest taxpayers deserve a level playing field. No business should be able to operate in the Philippines, earn income here, and evade the taxes required by law. The BIR will pursue these cases wherever the evidence leads us," Mendoza stated.