BIR padlocks Bocaue hardware over bogus receipts

July 26, 2013 10:59 am 

MANILA, July 26 — The Bureau of Internal Revenue (BIR) on Thursday padlocked Sun City Construction Supply (a.k.a. Smiley Hardware) located at No. 236, McArthur Highway, Barrio Wakas, Bocaue, Bulacan for violating Section 237 (Issuance of Receipts or Commercial Invoice) and Section 264 (Failure or Refusal to Issue Receipts or Commercial Invoices) of the National Internal Revenue Code of 1997, as amended (Tax Code).

The establishment is engaged in the business of trading construction supplies and materials and is reportedly owned by a certain Binleng Lu Bonamy.

Records of investigation showed that Sun City Construction Supply was the subject of a Mission Order issued to the Special Investigation Division (SID) of Revenue Region No. 5, Caloocan City to determine its compliance with the requirements of the Tax Code.

The BIR discovered during its surveillance and monitoring operations conducted pursuant to the said Mission Order that subject taxpayer was as a matter of practice regularly issuing unregistered or unauthorized receipts to its customers. This modus operandi was confirmed after personnel of the SID and their assets, posing as “poseur customers,” were issued unregistered receipts. Booklets of unregistered receipts were confiscated after the Mission Order was served.

Initial assessment of the business establishment’s tax liability was placed at around P10 million.

A 48-Hour Notice was issued informing the subject taxpayer of the findings and to make the necessary rectifications which it failed to do so.

A five–day VAT Compliance Notice was issued thereafter and again, the taxpayer failed to comply with the said VAT notice. Said failure led to the issuance of a Closure Order signed by BIR Operations Group Deputy Commissioner Nelson M. Aspe.

The closure of Sun City Construction Supply was implemented by Regional Director Gerardo R. Florendo and SID Chief Dennis P. Floreza pursuant to the Oplan Kandado program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares. (PNA)



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