BIR closes 12 businesses

MANILA, Philippines - The Bureau of Internal Revenue (BIR), the government’s main revenue agency, has padlocked 12 business establishments on Friday because of various tax violations.

Under the BIR’s Oplan Kandado program, business operations of non-compliant taxpayers will be suspended and their establishments will be temporarily closed if they will be found to have violated certain tax laws.

BIR Commissioner Sixto Esquivias IV said the enterprises were found to have committed violations of the Tax Code, ranging from the under-declaration sales to failure to file and pay value-added tax (VAT).

Out of the 12 padlocked establishments six operate in Valenzuela. These are Stronghold Hardware, Besman Auto Supply, Josenlly Commercial, Mamima Construction and Marmel General Merchandise.

Two more unregistered businesses, Stardust Video and Motorshop Parts and Accessories, were also served closure orders. These companies operate in Bulacan.

The remaining three establishments that were served closure orders are all located in Las Piñas City: BF Express Inc., BF Sinangag Express Food Corp., and Emilia and Sons, Inc.

Esquivias said this is the second instance that the BIR has closed a large number of establishments in a single day under its Oplan Kandado Program. 

Last Sept. 15, the BIR closed 46 establishments in Davao City.

Launched in January of this year, the Oplan Kandado Program has seen the temporary closure of more than 230 establishments found to be violating the Tax Code.

As such, the BIR has raised more than P72 million in additional revenues from the implementation of the program nationwide. Esquivias believes the program is successful as he vowed to continue encouraging voluntary compliance, fight tax evasion and enhance revenue collections.

However, many companies believe that the program has intimidated businesses and discouraged entrepreneurs from expanding their operations.