BIR shuts down online selling ops in Cebu over P211M undeclared sales

The Bureau of Internal Revenue (BIR) on Saturday said it has shut down a large-scale online selling operation in Cebu over alleged failure to declare over P211 million in sales.

In a news release, the BIR said the closure order was implemented on March 12 under the taxman’s Oplan Kandado program.

The closure came after an investigation conducted by the BIR’s Regional Investigation Division of Revenue Region No. 13 – Central Visayas together with the National Bureau of Investigation-Central Visayas Regional Office (NBI-CEVRO).

The investigation was done after authorities received confidential information about an online seller offering luxury goods through Facebook Live and other digital platforms without issuing official receipts and without proper registration with the BIR. 

The BIR said subsequent surveillance and tax compliance verification conducted by the operatives linked the business to locations in Jamestown and Mabini Street in Mandaue City, as well as Barangay Pahina Central in Cebu City.

The bureau said mission orders were issued authorizing investigators to monitor sales activities, verify tax compliance, and conduct an inventory of products subject to tax.

The BIR said an examination of business records seized during the operation showed that the seller generated more than P211 million in gross sales, based on the establishment’s own transaction records.

Based on these records, the taxman said it computed a minimum tax liability of P40.4 million, inclusive of surcharges and penalties.

The bureau said efforts are ongoing to locate the individual behind the operation, who has not responded to the BIR’s repeated notices.

The BIR is now preparing to pursue formal tax assessments and possible criminal charges against the individual under the Run After Tax Evaders (RATE) program.

“The BIR remains firm in ensuring that all businesses, whether operating in physical stores or on online platforms, comply with tax laws. Honest taxpayers should never be placed at a disadvantage by those who evade their obligations. We will continue to enforce the law and protect the integrity of our tax system,” said BIR Commissioner Charlito Martin Mendoza. —VBL, GMA Integrated News