Pasig River Avenger departs from momentarily from its cause of reviving Pasig River and exposing sham campaigns to save it.
Today, we take time to expose Silka Papaya Soap‘s attempt to dodge over P1.5 Billion in taxes by filing false Financial Statements from 2008 to 2011 that under reports its income by as much as 47%.
In 2011 alone, Silka Papaya claims to have made sales of just P990 Million pesos, but data from a reputable market research firm reveals that its sales were at P1.5 Billion.
Furthermore, 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, its actual net sales amounted to P 4,490,682,515.
This is a difference of P1.8 Billion of untaxed income!
Based on these figures, 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 this is just basing the estimated tax evasion on market research data, which just accounts for sales made through large supermarket chains. If we factor in sales made through small convenience stores and wet markets all over the country, the actual net sales of Silka Papaya may be well over P6 Billion and its resulting tax deficiency may as well be over P2 Billion.
We hope that this reaches BIR Commissioner Kim Henares and helps her in her campaign to reach her P1 Trillion tax collection target.