Cebu online seller shut down in BIR tax crackdown

The Bureau of Internal Revenue (BIR) has shut down a Cebu-based online seller amid an intensified crackdown on tax evasion in the digital marketplace. 

The agency said Tuesday it acted after uncovering more than P211 million in undeclared luxury-goods sales conducted on Facebook Live and other online platforms. 

The business was found unregistered with the BIR and failed to issue official receipts for its transactions.

Formal tax assessments and possible criminal charges are now being prepared under the BIR’s Run After Tax Evaders 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,” BIR Commissioner Charlito Martin R. Mendoza said.

Records seized during the operation showed that the seller generated over P211 million in gross sales. 

The BIR calculated a minimum tax liability of P40.4 million, including surcharges and penalties under the National Internal Revenue Code. 

Efforts are ongoing to locate the individual behind the operation, who has not responded to repeated BIR notices.

The probe was conducted by the BIR’s Regional Investigation Division of Revenue Region No. 13 – Central Visayas, led by Regional Director Douglas A. Rufino, in coordination with the National Bureau of Investigation – Central Visayas Regional Office. It was triggered by confidential reports of an online seller offering luxury items without complying with tax regulations.

Subsequent surveillance and tax compliance checks linked the business to locations in Jamestown and Mabini Street in Mandaue City and Pahina Central in Cebu City. 

Mission orders authorized investigators to monitor sales, verify tax compliance, and inventory taxable products.

The BIR said it is doubling down on its crackdown on tax evasion and illegal business activities to protect government revenues and ensure a level playing field for all compliant businesses.