The Philippine Bureau of Internal Revenue (BIR) of has brought a tax evasion complaint against offshore gaming operator Hongsheng Gaming Technology Inc., alleging that the company failed to properly declare income and tax obligations over a three-year period.

According to the tax authority, the case was filed with the Department of Justice (DOJ) on Aug. 6 and seeks to recover approximately ₱2.23 billion in alleged tax deficiencies. The investigation focused on Hongsheng’s activities from 2021 through 2023 and forms part of the government’s broader campaign against tax evasion.

BIR officials said the company substantially underreported its earnings, incorrectly declared value-added tax (VAT) liabilities and failed to remit required withholding taxes related to foreign employees. The agency stated that records obtained from multiple government institutions revealed major differences between Hongsheng’s declared revenues and information available through official sources.

The alleged deficiencies include unpaid corporate income taxes, VAT obligations and final withholding taxes, amounting to roughly ₱2.2 billion.

BIR Commissioner Charlito Martin R. Mendoza said the agency intends to continue pursuing cases involving suspected tax violations.

“Honest taxpayers deserve a level playing field,” Mendoza said according to Manila Bulletin. “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.”

Investigation Covers Three Taxable Years

The tax bureau said its review of Hongsheng’s financial activities covered taxable years 2021 to 2023. During that period, investigators concluded that the company significantly understated taxable income while also misreporting VAT liabilities across several reporting periods.

Authorities further alleged that Hongsheng failed to withhold and remit taxes that should have been collected from payments made to foreign workers employed by the company.

The BIR said evidence gathered during the investigation pointed to substantial inconsistencies between the firm’s reported financial information and records maintained by various government agencies. Those discrepancies ultimately formed the basis for the tax deficiency calculations cited in the complaint.

The filing represents one of the larger tax enforcement actions linked to the country’s former offshore gaming sector, which faced increasing scrutiny in recent years amid regulatory, criminal and national security concerns.

Company Previously Linked to Bamban Operations

Hongsheng Gaming previously operated from the Baofu compound in Bamban, Tarlac, a site that drew significant attention from authorities following law enforcement actions targeting alleged illegal activities.

Investigators had earlier raided the compound over suspected fraudulent cryptocurrency investment operations. The company later reportedly adopted the name Zun Yuan Technology Inc.

The rebranding attracted political attention. Senate President Sherwin Gatchalian previously described Zun Yuan as a “fake company,” alleging that listed owners and registered addresses could not be verified.

Hongsheng has also been connected to the case of former Bamban Mayor Alice Guo, who became widely known in connection with investigations into Philippine Offshore Gaming Operator (POGO) activities. Guo was previously listed as an owner of Hongsheng. Authorities raided the company’s operations in 2024, and Guo is currently serving a life sentence for human trafficking.

The Bamban compound itself was owned by Baofu Land Development, a company co-founded by fugitive businessman Huang Zhiyang. Reports indicated that Zhiyang avoided arrest during the 2024 operation and remains at large. Authorities last publicly confirmed his presence in Hong Kong in September 2024.

Part of Wider Enforcement Campaign

The legal action against Hongsheng falls under the BIR’s Run After Tax Evaders (RATE) program, an initiative designed to pursue individuals and companies suspected of tax fraud and other schemes that reduce government revenue.

Tax officials said enforcement efforts aim to protect businesses and individuals that comply with Philippine tax laws while discouraging practices that place compliant taxpayers at a disadvantage.

The case also arrives after major changes to the country’s offshore gaming landscape. President Ferdinand Marcos Jr. signed legislation banning all Philippine Offshore Gaming Operators, following concerns about criminal activity and risks to national security.

The prohibition took effect on Jan. 1, 2025. Philippine authorities later announced in April 2026 that POGO operations had been eliminated from the country.

The crackdown has had broader regional implications. Reports have indicated that scam-related operations displaced by enforcement efforts in the Philippines have expanded into Cambodia and parts of the Golden Triangle. Cambodian authorities have since launched an extensive campaign targeting scam compounds, while officials in Sri Lanka have also reportedly increased monitoring efforts in response to concerns that some operations may be shifting there.

Against that backdrop, the BIR’s pursuit of the ₱2.23 billion claim against Hongsheng represents another step in the Philippine government’s continuing effort to address alleged violations associated with the former offshore gaming industry.