Philippines files tax evasion cases tied to POGO firm, others
The Philippine Bureau of Internal Revenue (BIR) has filed criminal tax evasion complaints involving more than PHP416 million ($6.8 million) in alleged unpaid taxes, including a PHP402.74 million ($6.6 million) case against a company linked to the country’s former Philippine Offshore Gaming Operator (POGO) industry.
The bureau said that the cases were filed before the Department of Justice (DOJ) on 23 July under the BIR’s Run After Tax Evaders (RATE) Programme; the three complaints target a POGO-linked company, a construction firm and two VAT-registered real estate sellers.
Largest case targets POGO-linked company
The largest case involves Zun Yuan Technology Inc. and its officers. The company and its officers are accused of willful failure to pay taxes and willful failure to provide accurate information on tax returns.
Based on the bureau’s probe, the company declared revenue from its POGO operations but failed to report the taxable income generated from offshore gaming activities. The BIR said the alleged omissions resulted in deficiencies in income tax, value-added tax (VAT) and withholding taxes. These prompted the bureau to recommend criminal charges under the country’s National Internal Revenue Code (NIRC).
BIR Commissioner Charlito Martin Mendoza said the bureau would continue to pursue taxpayers who intentionally evade their obligations, regardless of the sector involved.
“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,” Mendoza said.
POGO scrutiny continues after nationwide ban
Philippine President Ferdinand “Bongbong” Marcos Jr. announced a nationwide ban on POGOs during his State of the Nation Address in July 2024. Marcos cited POGOs’ links to financial scams, money laundering, human trafficking, kidnapping and other criminal activities. He gave licensed operators until the end of that year to wind down operations.
In December 2024, the government shut down what was then the country’s largest POGO hub in Cavite. Since then, enforcement agencies have continued to pursue illegal underground operators while investigating companies suspected of tax violations and other financial crimes linked to former POGO activities.
Construction and real estate firms also charged
The BIR also filed criminal charges against AEP Construction and its officers over an estimated PHP6.02 million ($98,052) in tax liabilities.
According to the bureau, the company substantially underdeclared its taxable income, resulting in income tax and VAT deficiencies. Prosecutors were asked to pursue charges for willful attempt to evade or defeat tax, willful failure to pay taxes and willful failure to supply correct and accurate information in tax returns.
The bureau’s third complaint involves two VAT-registered real estate sellers. The case covers an estimated PHP7.31 million ($119,064) in income tax and VAT deficiencies.
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