BIR files ₱2-billion tax case against offshore gaming operator Hongsheng
By Jun Ramirez
The Bureau of Internal Revenue (BIR) filed a ₱2.23 billion tax evasion case against offshore online gaming operator Hongsheng Gaming Technology Inc. after its investigation uncovered underreporting of revenues and unremitted taxes.
In a statement, BIR Commissioner Charlito Martin R. Mendoza said the tax authority lodged the criminal complaint with the Department of Justice (DOJ) on Aug. 6, targeting the company’s operations covering taxable years 2021 through 2023.
According to the BIR, investigation records showed Hongsheng substantially underdeclared its taxable income, misstated value-added tax liabilities across multiple quarters, and failed to withhold and remit final withholding tax due on foreign employees.
Investigators cited significant discrepancies between Hongsheng’s declared earnings and cross-referenced official records from other government institutions.
The total tax deficiency consists of ₱2.2 billion spread across unpaid corporate income tax, value-added tax, and employee withholding taxes.
“Honest taxpayers deserve a level playing field,” Mendoza said. “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.”
The legal action forms part of the tax agency’s broader Run After Tax Evaders initiative, an ongoing enforcement program aimed at cracking down on illicit corporate schemes that weaken the national tax base and disadvantage compliant entities.