BIR files tax evasion raps vs 2 online shopping sites
BIR Commissioner Kim Henares. AP FILE PHOTO
MANILA, Philippines—The Bureau of Internal Revenue (BIR) on Thursday filed tax evasion complaints before the Department of Justice against two online shopping sites—Ensogo and CashCash Pinoy.
BIR said Ensogo’s tax liability is P36.14 million while CashCash Pinoy’s liability is P132.51 million both inclusive of surcharge and interest.
In two separate complaints, BIR accused Ensogo, Inc. and its president, Krit Srivorakul and treasurer Xelynne De Lara of willful failure to remit tax and deliberate failure to pay tax in violation of Sections 251 and 255 of the National Internal Revenue Code of 1997.
“Ensogo and its responsible corporate officers were charged for their failure to remit taxes withheld and for failure to pay the corresponding and withholding tax on compensation and value added tax for the period October 31, 2011 to October 31, 2014 in the total amount of P36. 14 million, inclusive of surcharge, interest and compromise penalty,” the BIR said in its complaint.
Ensogo provides marketing services to its merchants, who are engaged in the leisure, catering and entertainment industries. It’s website sells selection of products, services and travel discounts to customers in the Philippines, Indonesia, Hong Kong, Malaysia, Thailand and Singapore.
“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 considerable revenue losses for the government,” the BIR said adding that despite demand letters, Ensogo failed to settle their liabilities.
“Despite repeated demands by the BIR for Ensogo to pay its liabilities through the issuance and service of the said letters and warrants, the respondent failed and contributed to refuse to pay the taxes due to the government,” the complaint said.
On the other hand, Moonline Inc. which is engaged in the sale of products and services through the website CashCash Pinoy said the company and its officers-president Frederic Elie Levy and treasurer Bernadette Levy underdeclared the correct taxable income by 23 percent or P9.31 million in 2011, by 240 percent or P111.09 million the following year and by 181 percent or P129.88 million in 2013.
“One of its customers/ withholding agents, BDO Unibank Inc. disclosed that it remitted to the BIR creditable taxes in the amounts of P48.98 million in 2011, P155. 18 million in 2012 and P199.89 million in 2013 for payments made to Moonline,” the complaint said.
Their complaint said Moonline declared in its income tax returns for taxable years 2011, 2012 and 2013 gross income amounting to only P39.78 million, P46.26 million and P71.89 million respectively but investigation showed it received total income payments amounting to P49.09 million in 2011, P157.35 million in 2012 and P201.77 million in 2013, thus, substantially underdeclaring its correct taxable income.
“As a consequence of its acts and omissions, Moonline was likewise sued for an aggregate income tax liability amounting to P132.51 million, inclusive of surcharges and interests, broken down into P5.76 million in 2011, P62.02 million in 2012 and P64.73 million in 2013,” the BIR said.
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