The Bureau of Internal Revenue has shut down an online selling operation in Cebu after uncovering more than ₱211 million in undeclared sales, in one of the agency’s latest moves to tighten its crackdown on tax evasion in the digital marketplace.
The closure order was carried out on Thursday, March 12, under the BIR’s Oplan Kandado program following an investigation led by the Regional Investigation Division of Revenue Region No. 13–Central Visayas under the supervision of Regional Director Douglas A. Rufino.
The operation stemmed from a joint probe by the BIR and the National Bureau of Investigation-Central Visayas Regional Office after authorities received confidential information about an online seller reportedly dealing in luxury goods through Facebook Live and other digital platforms without issuing official receipts and without registering the business with the BIR.
Surveillance and tax compliance checks later traced the operation to several locations in Central Visayas, including Jamestown and Mabini Street in Mandaue City, as well as Pahina Central in Cebu City. Mission orders were then issued authorizing investigators to monitor sales activities, verify compliance and conduct an inventory of taxable goods.
Records seized during the operation revealed that the seller had generated more than ₱211 million in gross sales based on the establishment’s own transaction documents. From these records, the BIR computed a minimum tax liability of ₱40.4 million, inclusive of surcharges and penalties, under the National Internal Revenue Code.
Authorities said efforts are still underway to locate the person behind the business, who has yet to respond to repeated notices from the tax bureau.
The BIR said it is now preparing to pursue formal tax assessments and possible criminal charges under its Run After Tax Evaders program, signaling that the case could move beyond administrative enforcement into full-scale prosecution.
“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,” said BIR Commissioner Charlito Martin R. Mendoza.
The case forms part of the BIR’s intensified campaign against illegal business operations and tax evasion, as the government steps up efforts to safeguard revenues and ensure that online enterprises are held to the same standards as traditional brick-and-mortar businesses.