MANILA — The Bureau of Internal Revenue (BIR) has delivered a powerful warning to tax cheats in the booming online marketplace after shutting down a Cebu-based online selling operation that allegedly failed to declare more than ₱211 million in sales, triggering a massive tax evasion probe.

The closure, carried out on March 12 under the BIR’s Oplan Kandado, was the result of a joint intelligence operation between the BIR Regional Investigation Division of Revenue Region No. 13 – Central Visayas and the National Bureau of Investigation–Central Visayas Regional Office (NBI-CEVRO).

Investigators swooped in after receiving confidential information about an online seller peddling high-end luxury items via Facebook Live and other digital platforms, allegedly operating without proper BIR registration and issuing no official receipts or invoices.

Surveillance operations conducted by BIR and NBI agents traced the seller’s activities to multiple locations in Jamestown and Mabini Street in Mandaue City, as well as Pahina Central in Cebu City, prompting authorities to issue mission orders for full monitoring and tax compliance verification.

When investigators reviewed the business records seized during the operation, they found ₱211 million in gross sales, according to the establishment’s own records.

The BIR estimated that the undeclared sales translate to at least ₱40.4 million in tax liabilities, including surcharges and penalties, under the National Internal Revenue Code.

Authorities are now searching for the individual behind the operation, who has failed to respond to repeated BIR notices, while the agency prepares formal tax assessments and possible criminal charges under the Run After Tax Evaders (RATE) program.

BIR Commissioner Atty. Charlito Martin R. Mendoza made it clear that the government is now turning the full force of tax enforcement toward the digital economy, warning online sellers that hiding behind social media platforms will not shield them from the law.

“The BIR will hunt down tax evaders wherever they operate — whether in physical stores or online platforms. Businesses earning millions while refusing to pay taxes will face closure, criminal prosecution, and the full penalties of the law,” Mendoza declared.

Under Mendoza’s leadership, the BIR has intensified intelligence-driven enforcement operations, expanding investigations into social media sellers, digital retailers, and online trading platforms suspected of large-scale tax evasion.

The aggressive campaign is part of a broader government push ordered by President Ferdinand R. Marcos Jr. to strengthen revenue collection and ensure fairness in the tax system, with Finance Secretary Frederick D. Go directing revenue agencies to protect government income and maintain a level playing field for legitimate businesses.

With the Cebu shutdown serving as a high-profile warning, the BIR signaled that more closures, audits, and criminal cases are expected nationwide as the agency tightens its net on tax dodgers operating in the rapidly expanding online marketplace.

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