TAX CASE | BIR sues Ever Bilena of tax evasion, fake transactions

February 1, 2024 , 09:12 PM

By Clarist Zablan

(February 1, 2024) – The Bureau of Internal Revenue (BIR) on Thursday sued a popular cosmetic brand before the justice department allegedly for fake transactions and more than P9.3 million in tax deficiencies.

The BIR, in a statement, said it lodged a criminal complaint against Ever Bilena Cosmetics, Inc. and its accused corporate officers and accountant for violations of Sections 254, 255, 267 and 257 of the National Internal Revenue Code of 1997.

These provisions under the tax code refer to tax evasion; failure to file return, supply correct information, and pay tax; perjury; and making false entries or records, respectively.

“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,” the BIR said.

The BIR said its investigation found Ever Bilena declared millions of purchases in 2018 and 2021 that turned out to have been “based on non-existent goods/services from a ghost company” and were therefore “fictitious and anomalous.”

This led to Ever Bilena declaring purchases almost equal to its sales, the bureau said.

“Fictitious purchases from the ghost companies are intended to over-claim deductions both in the Annual Income Tax Return (AITR) and quarterly VAT (value added tax) returns (QVTRs) which eventually leads to a lesser or almost minimal income and VAT payments,” the BIR said.

Ever Bilena has not yet issued a statement on the complaint as of writing.

Ever Bilena, a local cosmetic business owned by Dioceldo Sy, touted more than 250,000 direct resellers and presence in over 6,000 retail stores nationwide, based on its official website. The company also employs 1,600 workers.

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