BIR Shuts Down Cebu Online Seller Over ₱211 Million Undeclared Sales

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The Bureau of Internal Revenue (BIR) has shut down an online selling operation in Cebu for failing to declare more than ₱211 million in sales, 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.

The closure order was implemented on Thursday, March 12, under the BIR’s Oplan Kandado program.

The enforcement action stemmed from a joint investigation by the BIR and the National Bureau of Investigation – Central Visayas Regional Office (NBI-CEVRO) 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. 

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

Mission Orders were subsequently issued authorizing investigators to monitor sales activities, verify tax compliance, and conduct an inventory of products subject to tax.

An examination of business records seized during the operation showed that the seller generated more than ₱211 million in gross sales, based on the establishment’s own transaction records.

Based on these records, BIR computed a minimum tax liability of ₱40.4 million, inclusive of surcharges and penalties, under the National Internal Revenue Code.

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 R. Mendoza.

 

The operation forms part of the BIR’s intensified enforcement campaign against illegal business activities and tax evasion, carried out in line with the directive of President Ferdinand R. Marcos Jr. to strengthen revenue integrity and ensure fair tax compliance, and consistent with the policy direction of Finance Secretary Frederick D. Go to protect government revenues and uphold a level playing field for law-abiding businesses.

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