THE Bureau of Internal Revenue (BIR) has filed tax evasion charges against a POGO-linked company said to have unpaid taxes worth P402.74 million.
In a statement on Wednesday, the BIR said it filed criminal complaints under the Run After Tax Evaders (RATE) Program against the POGO-linked company, a construction firm and two value-added tax (VAT)-registered real estate sellers. The three cases involve a combined tax liability of more than P416 million.
The biggest case was filed against Zun Yuan Technology Inc. and its officers for alleged willful failure to pay taxes and willful failure to supply correct and accurate information in tax returns, involving an estimated liability of P402.74 million.
Tax Commissioner Charlito Martin Mendoza said the investigation found that the company reported revenues from POGO operations but failed to declare substantial taxable income generated from offshore gaming activities.
He added that the alleged underdeclaration resulted in significant deficiencies in income tax, value-added tax (VAT), and withholding taxes, prompting it to recommend the filing of criminal charges for violations of the National Internal Revenue Code (NIRC).
“Whether the violation involves underdeclared income, false tax filings, or misrepresentation of transactions, the bureau will pursue every case supported by evidence,” Mendoza said.
Aside from the POGO-linked firm, the BIR also filed criminal charges against AEP Construction and its officers for alleged 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 construction firm's case involves an estimated tax liability of P6.02 million.
The BIR said its investigation found that the firm substantially underdeclared its taxable income, resulting in deficiencies in income tax and VAT.
The third case involves two VAT-registered real estate sellers accused of willful failure to pay taxes and willful failure to provide correct and accurate information in their tax returns.
The BIR estimated their total tax liability at P7.31 million.
The agency said the taxpayers treated the transactions as subject to capital gains tax despite being VAT-registered and engaged in selling real properties in the ordinary course of business. This allegedly resulted in deficiencies in income tax and VAT, leading the BIR to seek criminal prosecution.
From January to June this year, the BIR filed 269 criminal complaints nationwide under the RATE Program. The bureau said the three cases, together with other complaints filed by its regional offices in July, would further add to its nationwide enforcement record.
