BIR shutters business establishments in QC

MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Wednesday shuttered two  restaurants and a comedy bar in Quezon City for committing tax fraud and violating the Tax Code.

The business establishments, said the BIR, was charged with failure to declare theirs correct taxable sales and failure to pay deficiency income tax and value-added tax.

In a statement, the Bureau of Internal Revenue on Wednesday said ordered closed were  Bulalo Fiesta Park Corp. and Bulalo Fiesta,  owned by Vicente Villasor Jr.

Villasor was the subject of surveillance operations conducted by a team of Revenue Officers of Revenue District Office No. 28, Novaliches for the period covering February 7-16, 2013.

BIR records showed that Villasor is registered as a mere non-VAT taxpayer for the past years and has been declaring sales not exceeding P2 million annually. His highest sales declaration was P1.94 million in 2011 or an average daily sales pf P5,399.60. In 2012, Villasor's percentage tax returns for the first nine months reflected sales of P1.45 million or an average daily sales of P5,352.31 only.

"Surveillance operations, however, disclosed that the combined sales for 10 days of the three establishments was P1.69 million or an average daily sales of P151, 036.82. Compared to his declarations in 2011 and 2012 (first nine months), the BIR found Villasor to have underdeclared his sales by P52.43 million or 96. 42  percent in 2011 and by P39.33 million or 96.46 percent in 2012," the BIR said.

The order to close Villasor's businesses came after his refusal to comply with the requirements specified in the 48-hour notice and the five-day VAT compliance Notice. Villasor also failed to settle tax liabilities amounting to P38.3 million.