BIR Deputy Commissioner Arnel Guballa said he had ordered an investigation on social media payment platform Lyka's supposed tax delinquencies, after it was discovered that it is illegally performing as an operator of payment service, and is thus required to register with the BSP.
A FEW days after the Bangko Sentral ng Pilipinas (BSP) ordered social media platform Lyka to halt operations, the Bureau of Internal Revenue (BIR) said it is now investigating whether the payment app has been remiss in paying its taxes.
BIR Deputy Commissioner Arnel Guballa said he had ordered an investigation on Lyka's supposed tax delinquencies.
While the social media payment platform was registered with the BIR’s revenue district office (RDO) 39 in Quezon City, it was “not paying taxes,” he said.
Last week, BSP Governor Benjamin Diokno said the mobile application launched by a Hong Kong-based company “allows its users to purchase, exchange, and use gems (gift cards in electronic mode) as payments for goods and services” – a service regulated by the central bank.
Lyka users buy goods and services through the platform using so-called gift cards in electronic mode or GEMs.
Its users’ engagements were being rewarded with these GEMs accumulated through a digital point system, which “can be shared among friends, exchanged for goods with our partner-stores, and can be collected to redeem gifts on our Lyka Mall ranging from gift certificates, gadgets, and even hotel accommodations."
Some celebrities and social media influencers had been reportedly purchasing big-ticket items, including expensive vehicles, using Lyka GEMs.
“The Monetary Board has asserted that these activities make Lyka an OPS (operator of payment service), and is thus required to register with the BSP,” he said.
Diokno said Lyka executives have informed authorities of their willingness to register the company with the BSP.
OPS is required under Republic Act (RA) 11127, otherwise known as the National Payments System Act, to register with the central bank.
Tags: #onlinepayment, #electronicgiftcards, #Lyka, #BureauOfInternalRevenue, #BangkoSentralNgPilipinas