BIR padlocks six establishments for sales underdeclaration

May 21, 2015 4:46 am 

DAVAO CITY, May 20 — The Bureau of Internal Revenue (BIR) regional office on Tuesday padlocked six establishments selling motorcycle parts at Bangoy area for underdeclaration of sales between 40 to 90 percent.

BIR regional director Glenn Geraldino led the closure of the establishments under the BIR’s continuing implementation of Oplan Kandado.

The six establishments were LKK Motor Parts and Supply, Davao Unirich Motorcycle Parts; Davao Uni-Sun Motorcycle Parts; GTC Ccycle Center; and, two stores of Kim Hong Motorcycle Parts.

From all six establishments, Geraldino estimated to collect at least Php 2.5 million.

In the surveillance findings of the BIR, LKK Motor Parts underdeclared 88 percent of their sales amounting to Php 4.9 million with a VAT due of Php 588,069. Kim Hong has the biggest underdeclaration of 97 percent of their sales amounting to Php 10.2 million with a VAT due of Php 1.22 million; Davao Unirich underdeclared 63 percent of their sales amounting to Php 1.93 million with a VAT due of Php 232,769; GTC underdeclared 39 percent of their sales amounting to Php 978,202 with a VAT due of Php 117,384; and, Davao Uni-Sun underdeclared 68 percent of their sales amounting to Php 2.57 million with a VAT due of Php 309,245.

When BIR swooped down on their establishments to serve the closure order, the owners promised to comply with the BIR within three to five days. They refused to comment further.

Geraldino said the operation yesterday was their 57th. “We will always close establishments violating tax laws,” Geraldino said.

According to Geraldino, BIR has already padlocked 20 establishments for the first quarter but all them have also immediately complied with the law.

“They also want to operate their business,” he said. BIR’s Oplan Kandado is a program that aims to intensify its enforcement operation through strict imposition of prescribed administrative sanctions for non-compliance with the basic tax requirements.

Under the program, business operations of non-compliant taxpayers will be suspended and their establishments will be temporarily closed if they have violated certain tax laws.

Under the law, the suspension and temporary closure of business shall not preclude the BIR from filing the appropriate charges under the Run After Tax Evaders (RATE) program of the BIR, if evidence so warrants.

Business operations will be suspended or temporarily closed for failure to issue receipts or invoices by a VAT-registered or registrable taxpayer; failure to file a VAT return; understatement of taxable sales or receipts by 30 percent or more of the correct amount. (PNA)



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