The Bureau of Internal Revenue (BIR) filed three criminal cases for tax evasion before the Department of Justice (DOJ) involving a total estimated tax liability of more than P416 million. Under the Bureau’s Run After Tax Evaders (RATE) Program, the complaints were filed against a Philippine Offshore Gaming Operator (POGO)-linked company, a construction firm, and two VAT-registered real estate sellers.
The largest case involves Zun Yuan Technology Inc. and its officers, against whom the BIR filed criminal charges for willful failure to pay taxes and willful failure to supply correct and accurate information in tax returns. The case involves an estimated total tax liability of P402.74 million.
The BIR’s investigation found that while the company reported revenues from its Philippine Offshore Gaming Operator operations, it failed to declare substantial taxable income from offshore gaming activities, resulting in significant deficiencies in income tax, value-added tax, and withholding taxes. Based on these findings, the Bureau recommended the filing of criminal charges before the DOJ for violations of the National Internal Revenue Code (NIRC).
Commissioner Charlito Martin Mendoza emphasized that the Bureau will continue to pursue taxpayers who deliberately evade their tax obligations, regardless of the industry or scheme involved. From January to June 2026, the BIR filed 269 criminal complaints nationwide under the RATE Program. These three new complaints, together with other cases filed by the Revenue Regions in July, will add to the Bureau’s nationwide enforcement record once the figures for the month are consolidated.
“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.
The BIR also 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 supply correct and accurate information in tax returns. The case involves an estimated total tax liability of P6.02 million.
The BIR’s investigation found that the company substantially underdeclared its taxable income, resulting in deficiencies in income tax and value-added tax. Based on its findings, the Bureau recommended the filing of criminal charges before the DOJ for violations of the National Internal Revenue Code.
The third case involves two VAT-registered real estate sellers who face criminal charges for willful failure to pay taxes and willful failure to supply correct and accurate information in their tax returns. The case involves an estimated total tax liability of P7.31 million.
The BIR’s investigation found that the sellers treated the transactions as subject to capital gains tax despite being VAT-registered and engaged in the sale of real properties in the ordinary course of business. This resulted in deficiencies in income tax and value-added tax. Based on its findings, the Bureau recommended the filing of criminal charges before the DOJ for violations of the NIRC.
The RATE Program remains one of the Bureau’s principal enforcement initiatives against tax evasion. Through the filing and prosecution of criminal cases against willful tax offenders, the BIR seeks to protect compliant taxpayers, uphold fairness in the tax system, and ensure that those who deliberately evade their obligations are held accountable.