Thursday, January 17, 2013

On the Hoax Email Offering P150 Million Reward for information on Cosmetique Asia Silka Papaya's Tax Evasion

We would first like to deny any and all involvement in the alleged circulation of an e-mail stating that the BIR was offering a P150 Million reward for information on Cosmetique Asia Silka Papaya's tax evasion amounting to Php 1.5 Billion.

We suspect that the email hoax may have been unleashed by people whose aim is to discredit the information that we have published here.

We are not interested in any reward and we are doing this as a matter of principle, taking the side of tens millions of over-taxed and over-burdened Filipino salaried employees.

We see a grave injustice in the fact that multi-billion corporations like Silka Papaya get away with paying incorrect taxes, even as a sizable chunk (as much as 20 percent) of our income is taken away in the form of with held taxes.

According to its Financial Statements from 2007 to 2011, Cosmetique Asia Silka Papaya’s Net Sales amounted to P2,661,288,237.  But according to market research data from a reputable Market Research Firm, Silka Papaya's actual net sales amounted to P 4,490,682,515.



The total estimated under payment of basic tax is around P350 Million and the total estimated potential deficiency in taxes including penalties may range from P600 Million to P700 Million.

But that's just basing the tax deficiency on market research data from large supermarket chains and if we were to include sales made through small stores, the total tax deficiency of Silka Papaya may go over some Php 1.5 Billion!

To add insult to injury, the COO of the company even brags about his Ducatis and shouldering his entire clan's trip to China!

As for BIR Commissioner Kim Henares, a women whom we admire and trust, we would like to help her out in stating that the maximum reward for people who provide information on tax evasion is just P1,000,000 or 10 percent of the revenues, which ever is lower.

You can find the Reveneue Regulation here.

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