The Bureau of Internal Revenue (BIR) filed three criminal cases for tax evasion before the Department of Justice (DOJ) on July 23, involving a total estimated tax liability of more than P416 million, according to a statement on Wednesday.
The BIR filed the cases under its Run After Tax Evaders (Rate) Program against the following for violations of the National Internal Revenue Code:
Zun Yuan Technology Inc., a Philippine offshore gaming operator (POGO)-linked company, and its officers
AEP Construction and its officers
Two VAT-registered real estate sellers
Zun Yuan case
Zun Yuan Technology is accused of willful failure to pay taxes and willful failure to supply correct and accurate information in tax returns in a case that involves an estimated total tax liability of P402.74 million.
The BIR’s investigation found that while the company reported revenues from its Pogo 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.
AEP Construction
AEP Construction and its officers are accused of a willful attempt to evade or defeat tax, willful failure to pay taxes, and willful failure to supply correct and accurate information in tax returns in a case that 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.
Real estate sellers’ case
The third case involves two VAT-registered real estate sellers who are accused of willful failure to pay taxes and willful failure to supply correct and accurate information in their tax returns in a case that involves an estimated total tax liability of P7.31 million.
The BIR’s investigation found that the sellers, who were not identified, 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.
Continuing pursuit of tax evaders
BIR Commissioner Charlito Martin R. Mendoza emphasized that the BIR would continue to pursue tax evaders, regardless of the industry or scheme 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.
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 BIR’s nationwide enforcement record once the figures for the month are consolidated.
The BIR Rate Program remains one of its 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.