The Bureau of Internal Revenue (BIR) has filed a P2.228-billion tax evasion complaint against Hongsheng Gaming Technology Inc. before the Department of Justice (DOJ) over alleged tax violations covering taxable years 2021 to 2023.
The BIR said the company, which operated offshore gaming activities in the Philippines, allegedly underdeclared its income, improperly declared its Value-Added Tax (VAT), and failed to withhold and remit final withholding taxes for foreign employees.
According to the tax agency, its investigation and official records obtained from various government entities revealed significant discrepancies between Hongsheng’s declared income and figures reflected in official records.
The BIR noted that the alleged violations resulted in an estimated total tax deficiency of P2,227,759,311.21.
BIR Commissioner Charlito Martin R. Mendoza stressed that the agency will remain steadfast in protecting compliant taxpayers while pursuing businesses suspected of evading their legal responsibilities.
“No business should be allowed to profit in the Philippines while evading its tax obligations under the law,” Mendoza said.
The criminal complaint was formally submitted under the BIR’s Run After Tax Evaders (RATE) Program, an initiative designed to strengthen tax law enforcement and hold individuals and corporations accountable for practices that deprive the government of lawful revenues.
The case will now undergo preliminary investigation before the DOJ, which will determine whether there is sufficient probable cause to file criminal charges in court against the company and its responsible corporate officers.