The Bureau of Internal Revenue (BIR) filed the 23rd case under the Run After Fake Transactions (RAFT) against a known cosmetic brand with total tax deficiencies amounting to P9.3 million.
The BIR filed a criminal complaint against Ever Bilena Cosmetics Inc. (Ever Bilena) before the Department of Justice on Thursday.
A news statement said the cosmetic brand is being sued for total tax deficiencies of P9.32 million for taxable years 2018 and 2021.
The BIR said Ever Bilena violated the following sections of the National Internal Revenue Code: 254 (Tax Evasion); 255 (Failure to Supply Correct and Accurate Information in the Income Tax Return and Value-Added Tax Return), 267 (Perjury); and, 257 (Making False Records or Report).
“BIR records of investigation showed that Ever Bilena made it appear that it had millions of purchases in the years 2018 and 2021,” the BIR said in the statement.
The BIR clarified that there were no such transactions and that its purchases were based on non-existent goods or services from a ghost company.
Ever Bilena was able to declare purchases that are almost equal to its sales due to the “fictitious” and “imaginary” transactions, added BIR.
The bureau explained that “fictitious purchases” from the ghost companies are intended to “over-claim” deductions both in the Annual Income Tax Return (AITR) and the quarterly value-added tax returns (QVTRs).
These would eventually lead to a lesser or almost minimal income and VAT payments, the BIR said.
The charges are made under the bureau’s RAFT program launched in March 2023, part of BIR’s intensified programs to boost its revenue collection performance.
Previously, the BIR also filed cases against four ghost corporations with estimated tax liabilities of P25.5 billion and three corporate buyers and their officers, accounting firms, and certified public accountants (CPA) with total estimated tax liabilities of P17.9 billion.
The bureau has also filed 15 criminal charges against buyers and sellers of ghost receipts against a total of 69 respondents with estimated tax liabilities worth P1.8 billion. (See: https://businessmirror.com.ph/2023/11/23/bir-files-15-criminal-cases-vs-traders-of-ghost-receipts/)
As of November 2023, the BIR has collection P2.34 trillion, higher than the P2.16 trillion it recorded in 2022.