BIR files tax evasion charges vs CashCashPinoy, Ensogo

MANILA, Philippines – The Bureau of Internal Revenue (BIR) on Thursday, February 5, filed criminal complaints against online retailer CashCashPinoy and e-commerce platform Ensogo for alleged failure to pay the correct taxes.

According to a GMA News report, the BIR accused Moonline Inc – which sells products and services through the CashCashPinoy website – of a “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, and 2013.

The BIR 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.

Moonline president Frederic Levy and treasurer Bernadeth Levy were named in the complaint.

The BIR noted that Banco de Oro Unibank Incorporated – a withholding agent and customer of Moonline – remitted P48.98 million in taxes in 2011, P155.18 million in 2012, and P199.89 million in 2013 for income payments made to Moonline.

The BIR also saw that Moonline declared in its 2011-2013 income tax returns a gross income of P39.78 million in 2011, P46.26 million in 2012, and P71.89 million in 2013. According to the BIR, however, 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 the company underdeclared its taxable income by P9.31 million in 2011, by P11.09 million in 2012, and by P129.88 million in 2013.

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

In a statement, Moonline said that it “has always paid the proper taxes as any law-abiding business in the Philippines should.

“Since 2011, Moonline is audited every year by the firm KPMG. We have not been officially notified of any complaints against us for alleged failure to pay the correct taxes. Should there be additional requirements from the Bureau of Internal Revenue, we are ready to comply with them,” it said.

Meanwhile, ABS-CBN reported the BIR also filed criminal complaints against Ensogo Incorporated, its president Krit Srivorakul, as well as treasurer Xelynne de Lara for a willful failure to remit taxes and deliberate failure to pay taxes from October 31, 2011 to October 31, 2014 amounting to P36.1 million. The amount includes surcharge, interest, and compromise penalty.

Ensogo serves as a withholding agent mandated to withhold taxes on various income payments to its suppliers and to withhold taxes on the compensation of its employees, and an Electronic Filing and Payment System (eFPS) taxpayer.

The BIR, however, said that while Ensogo electronically filed its withholding tax and value-added tax (VAT) returns, it “deliberately, willfully, and continuously failed” to remit taxes withheld.

It also failed to pay the corresponding withholding taxes and VAT due them, whether electronically or manually, resulting in revenue losses for the government. – Rappler.com