BIR goes after Ensogo, CashCashPinoy

MANILA – The Bureau of Internal Revenue (BIR) has filed separate criminal complaints against the operators of online shopping sites Ensogo and CashCashPinoy for alleged failure to pay the correct taxes.

The BIR said charges were filed against Ensogo Inc., its president Krit Srivorakul and treasurer Xelynne de Lara for willful failure to remit taxes and deliberate failure to pay taxes from October 31, 2011 to October 31, 2014 amounting to P36.1 million, inclusive of surcharge, interest, and compromise penalty.

Ensogo provides marketing services to its merchants, which are engaged in the leisure, catering and entertainment industries.

It 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.

However, BIR said investigators discovered that while Ensogo electronically filed its withholding tax and value-added tax (VAT) returns, it “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 Ensogo website sells a selection of products, services and travel offers at discount prices to customers in the Philippines, Hong Kong, Indonesia, Malaysia, Singapore and Thailand.

Ensogo, on the other hand, was founded in 2010 and has a registered office at the Bonifacio Global City.

CashCashPinoy says it is paying taxes

Charges were also filed against Moonline Inc., which is engaged in the sale of products and services through the deals website CashCashPinoy, its president Frederic Elie Levy and treasurer Bernadette Levy for willful attempt to evade or defeat tax, and deliberate failure to supply correct and accurate information in its income tax returns (ITR) for taxable years 2011, 2012 and 2013.

The case against Moonline Inc. stemmed from the BIR's campaign to improve revenue collections to meet its collection target by capturing into the tax net the sale of products and services through online websites.

The BIR said that based on its investigation, Moonline underdeclared its correct taxable income by 23 percent or P9.31 million in 2011, by 240 percent or P111.09 million in 2012, and by 181 percent or P129.88 million in 2013.

Moonline was also sued for an aggregate income tax liability amounting to P132.51 million, inclusive of surcharges and interests.

In a statement, Moonline denied the allegations, saying it has paid the proper taxes.

"Our company has always paid the proper taxes as any law abiding business in the Philippines should. In addition to this, 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," the company said.

Moonline’s CashCashPinoy was founded in 2011 and holds its offices in Paseo De Roxas, Makati City.

source: www.abs-cbnnews.com

Jeane Napoles charged with tax evasion

First, her parents Janet and Jimmy Napoles; now, it's the turn of Jeane Napoles to be charged with tax evasion before the Department of Justice (DOJ).

The Bureau of Internal Revenue (BIR) charged the younger Napoles with violations of the National Internal Revenue Code (NIRC) for an alleged total tax liability of P32.06 million, inclusive of surcharges and interests, for taxable years 2011 and 2012.

BIR Commissioner Kim Henares said Napoles was able to acquire a condominium unit at the Ritz Carlton in Los Angeles, California worth P54.73 million; and has a share, equivalent to P1.49 million, in a Bayambang, Pangasinan property purchased in 2012.

"She, however, did not file any income tax return (ITR) in 2011 and 2012; nor were there any records of returns filed that will prove that gifts, bequests or devices were given to her.

"There was no donor's tax or estate tax paid either," Henares said.

The BIR used the Expenditure Method of Investigation, where Napoles' unreported income was established by comparing the amount of money she spent to purchase the properties and her unreported income.

“The presumption is to be able to buy something worth P54.73 million, she would have earned an income net of taxes of P54.73 million. This is a conservative estimate because hindi pa namin binibilang yung gastos mo para mabuhay ka, kung nagpapa-party ka gabi gabi,” she said.

Henares said Napoles acquired a tax identification number (TIN) with the BIR in 2008, but has not filed any ITR eversince.

The charges against Jeane Napoles is the 191st filed by the bureau under its Run After Tax Evaders (RATE) program under the Aquino administration.

Ritzy lifestyle

Janet Lim Napoles, who has been implicated in the P10-billion pork barrel and Malampaya fund scandal, earlier confirmed that she bought the Ritz Carlton unit in Los Angeles for her daughter as a reward for doing good in school.

She also admitted giving her daughter a Porsche Cayenne and a Porsche Boxster.

The younger Napoles earlier came under fire after her Instagram photos showed expensive cars she received from her parents during her birthday, debut and graduation from college.

The photos also show expensive watches, jewelry, clothing, and shoes.

The BIR has also filed tax evasion charges against Janet Lim Napoles and her husband.

source: www.abs-cbnnews.com

Taxpayers beat deadline for filing ITR

MANILA, Philippines - Hundreds of taxpayers lined up at the Bureau of Internal Revenue (BIR) in Quezon City, beating the deadline for filing income tax returns on Monday.

ABS-CBN talked to some taxpayers, who called on the government to do more projects so that people will be more inspired to pay the correct taxes.

BIR Commissioner Kim Henares says income earners have 2 responsibilities - to pay the correct taxes and monitor and check where the taxes go.

According to Henares, it is up to the public to make sure that taxes go to its intended purpose but it cannot be used as a reason not to pay the correct taxes.

The BIR is tasked to collect P1.253-trillion this year to fund various government projects.

Henares believes the weekly filing of tax evasion charges against those who do not pay the correct taxes is improving tax collection efforts. According to Henares, if before only 10 out of 100 pay correct taxes, now 20 are paying correctly for fear of being charged in court.

source: www.abs-cbnnews.com