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Aubrey Rose Inosante - The Philippine Star
August 21, 2026 | 12:00am
In the agency’s investigation, Hongsheng was found to have substantially underdeclared its income, failed to declare the correct value-added tax (VAT) liabilities for several taxable quarters, and failed to withhold and remit the required final withholding tax on payments to its foreign employees.
BW File
MANILA, Philippines — The Bureau of Internal Revenue (BIR) has filed a tax evasion case with the Department of Justice against Hongsheng Gaming Technology Inc., which operated offshore gaming activities in the Philippines, over alleged tax violations resulting in P2.23 billion in tax deficiencies.
In the agency’s investigation, Hongsheng was found to have substantially underdeclared its income, failed to declare the correct value-added tax (VAT) liabilities for several taxable quarters, and failed to withhold and remit the required final withholding tax on payments to its foreign employees.
The BIR investigation covered taxable years 2021 to 2023.
Based on records gathered from various government agencies, the authorities found significant discrepancies between Hongsheng’s declared revenues and information reflected in official records.
These discrepancies resulted in P2.23 billion in alleged deficiency income tax, VAT and final withholding tax liabilities, it said.
Hongsheng previously operated at the Baofu compound in Bamban, Tarlac, where authorities raided the company over alleged fraudulent cryptocurrency investment operations.
The company allegedly changed its business name to Zun Yuan Technology Inc., which Senate President Sherwin Gatchalian earlier described as a “fake company” as its owners and their addresses are non-existent.
President Marcos signed into law a measure banning all Philippine Offshore Gaming Operators amid illicit activities and threats to national security.
BIR Commissioner Charlito Martin Mendoza said the agency would continue to protect compliant taxpayers from deliberate 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,” he said.
The case remains part of the agency’s Run After Tax Evaders program, which targets tax evasion and other schemes that undermine government revenues and put compliant taxpayers at a disadvantage.
