CEBU CITY, PHILIPPINES — An online selling operation of luxury goods in Cebu was shut down by the Bureau of Internal Revenue (BIR) after it allegedly failed to declare more than ₱211 million in sales.
The operation comes following an investigation conducted by the Regional Investigation Division of Revenue Region No. 13 – Central Visayas under the supervision of Regional Director Douglas A. Rufino.
Upon surveillance and tax compliance verification conducted by BIR and NBI operatives, its physical stores were linked to several locations in Cebu, including Jamestown and Mabini Street in Mandaue City, as well as Pahina Central in Cebu City.
The closure order was implemented on Thursday, March 12, through the BIR’s Oplan Kandado program, which authorizes the temporary closure of establishments that violate tax laws after subsequent violations.
According to BIR, the enforcement action stemmed from a joint investigation by the BIR and the National Bureau of Investigation – Central Visayas Regional Office (NBI-CEVRO) after receiving confidential information on an online seller offering luxury goods through Facebook Live and other digital platforms without issuing invoices and without proper registration with the BIR.
Mission orders were later issued which then authorized investigators to monitor sales activities, verify tax compliance, and conduct an inventory of products subject to taxation.
Following this protocol, and during the operation, authorities examined business records obtained from the establishment and found that the seller had generated more than ₱211 million in gross sales, based on its own transaction records.
Using these documents, the BIR computed a minimum tax liability of about ₱40.4 million, inclusive of surcharges and penalties, in accordance with the National Internal Revenue Code.
Currently, efforts are ongoing to locate the individual behind the operation, who has reportedly not responded to repeated notices issued by the BIR.
The agency is now preparing to pursue formal tax assessments and possible criminal charges against the individual under its 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,” said BIR Commissioner Charlito Martin R. Mendoza in a statement posted on their Facebook page.
“We will continue to enforce the law and protect the integrity of our tax system,” he added.
According to the agency, the operation reflects BIR’s intensified campaign against illegal business activities and tax evasion, in line with the directive of President Ferdinand R. Marcos Jr. to strengthen revenue integrity and ensure fair tax compliance.
It is also consistent with the policy direction of Finance Secretary Frederick D. Go to safeguard government revenues and promote a level playing field for law-abiding businesses.
The Freeman tried to reach out to Director Rufino and Commissioner Mendoza for more details and actions moving forward but has yet to issue any response as of press time.
| Written by Mitchelle L. Palaubsanon/IHM
