BIR files cases vs. online retailers for evading P170M in total taxes

(Updated 6:10 p.m.) The Bureau of Internal Revenue (BIR) on Thursday filed separate criminal charges against online shopping website CashCashPinoy and e-commerce platform Ensogo for evading taxes totaling almost P170 million.

 

The BIR accused Moonline Inc., which sells products and services through online website CashCashPinoy, of willful attempt to evade its tax obligations and deliberate failure to supply the correct and accurate information in its income tax return for 2011, 2012, 2013.

 

The claimed the company violated Sections 254 and 255 in relation to Sections 27, 253, and 256 of the National Internal Revenue Code of 1997, as amended.

 

The BIR said Makati-based Moonline sells apparel, health and fitness products, and packages for restaurants, bars, salons, spas, special events, and travel packages.

 

Slapped with charges were Moonline's president Frederic Levy and treasurer Bernadeth Levy.

 

Checking with Banco de Oro Unibank Inc., a withholding agent and customer of Moonline, the BIR noted that the bank remitted taxes amounting to P48.98 million in 2011, P155.18 million in 2012, and P199.89 million in 2013 for income payments made to Moonline.

 

Also, the BIR discovered that Moonline declared in its ITRs from 2011 to 2013 gross income amounting to only P39.78 million (2011), P46.26 million (2012), and P71.89 million (2013).

 

However, the BIR said it found out that the income payments made to Moonline amounted to P49.09 million in 2011, P157.35 million in 2012, and P201.77 million in 2013.

 

The BIR alleged that the company underdeclared its taxable income by 23 percent or P9.31 million in 2011, by 240 percent or P11.09 million in 2012, and by 181 percent or P129.88 million in 2013.

 

The BIR said Moonline's tax liability totaled P132.51 million.

 

The BIR also sued Ensogo Inc. for failing to remit taxes withheld and for not paying the corresponding expanded/withholding tax on compensation and value-added tax from 2011 to 2014, amounting to P36.14 million.

 

The Taguig-based company provides marketing services to its merchants which are mainly engaged in the leisure, catering and entertainment industries, according to the BIR.

 

"Investigators discovered that Ensogo electronically filed its withholding tax and VAT returns but deliberately, willfully and continuously failed to remit taxes withheld and/or pay the corresponding withholding taxes and VAT due thereon, whether electronically or manually resulting to [sic] considerable revenue losses for the government," the BIR noted.

 

Sued were Ensogo president Krit Srivorakul and treasurer Xelynne de Lara.

 

The BIR said the two cases reflect its attempts to "capture into the tax net the sale of products and services through online websites." – With a report by Kathryin Mae P. Tubadeza/VS, GMA News