THE Bureau of Internal Revenue (BIR) filed on Thursday, Feb. 1, 2024, a criminal complaint with the Department of Justice against a cosmetic brand for alleged fake transactions.
The respondents, Ever Bilena Cosmetics Inc. (Ever Bilena) and its corporate officers and a certified public accountant, were sued for violations of Sections 254, 255, 267 and 257 of the National Internal Revenue Code of 1997, as amended.
The BIR found that the brand has total deficiency taxes amounting to P9,316,206.88 for taxable years 2018 and 2021.
BIR records showed that the firm made it appear that it had millions of purchases in the years 2018 and 2021, when in truth, there were no such transactions.
BIR said Ever Bilena’s purchases were based on non-existent goods/services from a ghost company, thus “fictitious and anomalous.”
“As a result of these imaginary/fictitious transactions, Ever Bilena was able to declare purchases which are almost equal to its sales,” the bureau said in a statement.
“Fictitious purchases from the ghost companies are intended to over-claim deductions both in the Annual Income Tax Return and quarterly Value Added Tax (VAT) returns which eventually leads to a lesser or almost minimal income and VAT payments,” it added.
The complaint filed Thursday is the 23rd case filed under the “Run After Fake Transactions Program” of the BIR under the leadership of Commissioner Romeo Lumagui Jr.
Ever Bilena has not yet issued a statement on the matter as of Friday, Feb. 2, 2024.
The local cosmetic brand reportedly has over 250,000 direct resellers. It is also present in around 6,000 retail stores across the country.