Philippine tax agency sues CashCashPinoy, Ensogo for tax evasion

The Philippines’ Bureau of Internal Revenue (BIR) filed before the Justice Department today tax evasion complaints against daily deals sites CashCashPinoy and Ensogo, according to local media reports.

CashCashPinoy denied the allegations in a statement posted on its website. Ensogo’s shareholders, in the meantime, said they would reach out to the BIR to clarify the issue, as well as the company’s previous owners “who may be responsible.”

According to reports quoting the BIR’s complaints, CashCashPinoy’s tax liability amounts to P132.51 million (US$3 million), while Ensogo’s stands at P36.1 million (US$818,316), with both figures inclusive of surcharge and interest.

The revenue agency charged Moonline, the company running the CashCashPinoy site, its president Frederic Levy, and treasurer Bernadette Levy for “willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information” in income tax returns (ITRs) for years 2011 until 2013.

It said Moonline declared gross incomes of only P39.78 million (US$901,734) in 2011, P46.26 million (US$1 million) in 2012, and P71.89 million (US$1.63 million) in 2013 when investigation showed it received total income payments amounting to P49.09 million (US$1.11 million), P157.35 million (US$3.57 million), and P201.77 million (US$4.57 million) for said years, respectively.

In a statement, Moonline said:

Our company has always paid the proper taxes as any law abiding business in the Philippines should. In addition to this, since 2011, Moonline is audited every year by the firm KPMG. We have not been officially notified of any complaints against us for alleged failure to pay the correct taxes.

The company added it would comply with the BIR if there were additional requirements.

CashCashPinoy claims to be a pioneer in online shopping in the Philippines, with 1.5 million members. The company sells designer brand accessories, beauty, home decor products, and travel and other services for up to 80 percent off retail.

See: CashCashPinoy gets $2M funding for daily deals battle

Ensogo, too

Meanwhile, the BIR lodged charges against Ensogo, its original owner Krit Srivorakul, and treasurer Xelynne de Lara for their alleged “failure to remit taxes withheld and for failure to pay the corresponding and withholding tax on compensation and value added tax for the period October 31, 2011 to October 31, 2014.”