MANILA, Philippines - The Bureau of Internal Revenue (BIR) has padlocked a business establishment in Mandaluyong City for failing to settle its tax obligations.
BIR Commissioner Kim Henares said the agency padlocked ABC Star Commodities Inc. because it failed to pay correct income taxes including value-added tax (VAT) for 2007 and 2008.
Investigation by the BIR showed that the company understated its sales for purposes of the VAT by P9.2 million or by 60.39 percent for taxable year 2007 and by P11.7 million or by 96.62 percent for taxable year 2008.
Furthermore, BIR investigation showed that total deficiency tax liability of the corporation for the said taxable years, including increments, amounted to P4.6 million.
Of the amount, the company owed the BIR P2.14 million in 2007 and P2.45 million in 2008.
The BIR said the company failed to settle its dues despite a 48-hour notice issued by Revenue District Office (RDO) No.41 in Mandaluyong City informing the subject taxpayer of the findings.
After this, the BIR issued a five-day VAT compliance notice as the company also did not heed its 48-hour notice.
BIR Deputy Commissioner Nelson Aspe issued the closure order after the company failed to comply with the above notices.
The BIR said the closure order was implemented by Revenue District Office No. 41, Mandaluyong City, led by Revenue District Officer Isabel Paulino and Assistant Revenue District Officer Olivia Amanse together with Revenue Region No. 7, Quezon City Office-In-Charge Assistant Director Jonas Amora.
The closure of ABC Star Commodities Inc. is part of the BIR’s Oplan Kandado project. Under the project, erring business establishments are shut down by the BIR.
Under heavy pressure to boost collections, the BIR is stepping up its campaign against tax evaders.
It is tasked to collect P860 billion this year but Henares already conceded that the agency would likely be able to hit only its original revenue goal of P830 billion, saying that the P860-billion goal is too high.