Home>News>The fight against fake transactions continues

The fight against fake transactions continues

Fake transactions

As part of its commitment to run after fake transactions, the BIR, headed by Commissioner Romeo D. Lumagui Jr., filed today another criminal complaint with the DOJ against a known cosmetic brand “Ever Bilena Cosmetics, Inc.” (Ever Bilena) together with its responsible corporate officers and Certified Public Accountant, for violations of Sections 254, 255, 267 and 257 of the National Internal Revenue Code of 1997, as amended.

Respondents are being sued for a total deficiency taxes amounting to Php9,316,206.88 for taxable years 2018 and 2021.

BIR records of investigation showed that Ever Bilena made it appear that it had millions of purchases in the years 2018 and 2021. When, in truth and in fact, there were no such transactions and its purchases were based on non-existent goods/services from a Ghost Company. Thus, fictitious and anomalous. As a result of this imaginary/fictitious transactions, Ever Bilena was able to declare purchases which are almost equal to its sales. Fictitious purchases from the ghost companies are intended to over-claim deductions both in the Annual Income Tax Return (AITR) and quarterly VAT returns (QVTRs) which eventually leads to a lesser or almost minimal income and VAT payments.

The instant criminal complaint is the 23rd case filed under the Run After Fake Transactions Program of the BIR under the leadership of Commissioner Romeo D. Lumagui Jr. as his resolute fight against fake transactions continues.

Journal Online
A collection of noteworthy information on various topics from the Philippines and the rest of the world.