THE Bureau of Internal Revenue (BIR) has closed a major online selling business in Cebu after discovering more than P211 million in sales that were never reported to the government. This massive discovery has left the business owner facing an estimated P40.4 million in unpaid taxes and penalties.
The closure took place on Thursday, March 12, 2026, as part of the agency’s "Oplan Kandado" program. The investigation was led by the BIR 7 Regional Investigation Division under the supervision of Director Douglas Rufino.
Luxury goods sold without receipts
The crackdown began after the BIR and the National Bureau of Investigation (NBI) received a tip about a popular online seller. The business used Facebook Live and other digital platforms to sell luxury goods to customers.
Investigators found two major problems with the operation:
• The seller failed to register the business with the BIR.
• The seller did not issue official receipts for any of the high-priced items sold.
Authorities tracked the business to three locations: Jamestown and Mabini St. in Mandaue City, and Pahina Central in Cebu City. Using special mission orders, investigators monitored the sales and checked the inventory of the luxury items.
The cost of tax evasion
By looking through the business's own transaction documents, investigators calculated that the seller had made over P211 million in gross sales.
Based on these numbers, the BIR estimated the total tax liability at P40.4 million. This large amount includes the original taxes owed plus the heavy penalties and surcharges required by the National Internal Revenue Code.
Currently, authorities are searching for the person operating the business. The operator has not yet responded to the official notices sent by the BIR.
Fair play for all businesses
BIR Commissioner Charlito Martin Mendoza stated that the bureau will continue to enforce tax laws for both online and offline shops. This operation is part of the "Run After Tax Evaders" program, which can lead to criminal charges in court.
The agency explained that these enforcement drives are necessary to make sure all businesses follow the same rules. By catching those who avoid taxes, the government ensures fair competition for honest business owners who pay their dues. / CDF