Manila: The Bureau of Internal Revenue (BIR) has initiated three criminal cases for tax evasion against entities including a Philippine Offshore Gaming Operator (POGO)-linked company, a construction firm, and two VAT-registered real estate sellers. These cases, encompassing a total estimated tax liability exceeding PHP416 million, were filed under the BIR's Run After Tax Evaders (RATE) program before the Department of Justice (DOJ) on July 23.
According to Philippines News Agency, the most substantial case involves Zun Yuan Technology Inc. and its officers, who face criminal charges for willful failure to pay taxes and to provide correct and accurate information in their tax returns. The estimated total tax liability for this case stands at PHP402.74 million. Investigations revealed that, although the company reported revenues from its POGO operations, it failed to declare significant taxable income from offshore gaming activities, resulting in notable deficiencies in income tax, value-added tax, and withholding taxes.
Commissioner Charlito Martin Mendoza underscored the Bureau's commitment to pursuing taxpayers who intentionally evade their tax responsibilities, irrespective of the industry or method used. From January to June 2026, the BIR filed 269 criminal complaints nationwide under the RATE Program. The addition of these three new complaints, alongside other cases filed by the Revenue Regions in July, will contribute to the Bureau's national enforcement record once consolidated.
Mendoza stated in a news release, 'Whether the violation involves underdeclared income, false tax filings, or misrepresentation of transactions, the Bureau will pursue every case supported by evidence. Honest taxpayers deserve a system that is fair, and that means holding accountable those who deliberately evade paying the correct taxes.'
In a separate case, the BIR filed criminal charges against AEP Construction and its officers for willful attempt to evade or defeat tax, willful failure to pay taxes, and willful failure to provide correct and accurate information in tax returns. This case involves an estimated total tax liability of PHP6.02 million, with investigations revealing substantial underdeclaration of taxable income, leading to deficiencies in income tax and value-added tax.
The third case pertains to two VAT-registered real estate sellers charged with willful failure to pay taxes and to provide correct and accurate information in their tax returns, involving PHP7.31 million. The BIR found that these sellers mistakenly treated transactions as subject to capital gains tax, despite being VAT-registered and engaged in real estate sales in the ordinary course of business, resulting in income tax and value-added tax deficiencies.
Based on its findings, the Bureau has recommended filing criminal charges before the DOJ for violations of the National Internal Revenue Code against Zun Yuan Technology, AEP Construction, and the two real estate sellers. The RATE Program remains a key enforcement initiative for the Bureau against tax evasion, aiming to protect compliant taxpayers, maintain fairness in the tax system, and hold accountable those who deliberately evade their tax obligations.
