Restaurant, warehouse closed for tax violations

CEBU, Philippines — A Chinese restaurant and a warehouse were temporarily shut down by the Bureau of Internal Revenue (BIR) in Central Visayas for numerous tax violations.

Implementing its Oplan Kandado, BIR-7 personnel padlocked on Thursday, November 28, the 88 BBQ House in Barangay Mabolo, Cebu City and a warehouse in Barangay Subangdaku, Mandaue City due to the under declaration of the taxpayer whose name cannot be disclosed.

BIR-7 Legal Officer Jay Rozen Bartazan said the owner of the two establishments has violated Section 115 of the National Internal Revenue Code of 1997 by not issuing receipts or invoices and failure to file value added tax (VAT) returns as well as understating taxable sales or receipts by at least 30 percent.

Bartazan said the owner also used unregistered receipts and unregistered cash register machine (CRM).

“They were given an opportunity to rebut but unfortunately they were not able to do so. And there was an order from our national office ordering for the temporary closure of the establishment,” said Bartazan.

 According to Bartazan, the owner was given ample opportunity to provide an explanation. But failed to justify the discrepancies adequately, prompting the BIR to enforce the temporary closure.

“We explained earlier to the taxpayer, the only way they can lift the temporary closure order is to come here (at) RDO 81 and once they can settle the tax liabilities. Once they are cleared, the temporary closure order can be lifted,” he added.

The taxpayer was also given a 48-hour notice to explain by BIR regional director Douglas Rufino but was allegedly “unable to explain the discrepancy.”

Bartazan warned the owners of the establishments that they could face additional charges if they insist on operating their business despite the temporary closure.

The charges may include criminal under Section 151 of the Revised Penal Code for Disobedience to an Unlawful Order.

 “We informed them of the nature of the temporary closure and should they fail to do that or force open that would be a bigger problem for them. They could be facing additional criminal charges on top of the violations they have,” said Bartazan.

They are, however, allowed to get inside to get the perishable goods but they cannot operate their business until such time the closure order is lifted.

BIR Chief Revenue Officer IV Atty. Eddie Leo A. Galera II said that the recent closure underwent the Regional Evaluation Board and this served as a warning to other taxpayers to comply with tax laws including proper sales declaration and branch registration.

“Pinapakita namin sa mga taxpayers namin na if you are not serious in paying taxes, we are serious in pursuing your liabilities,” said Atty. Nicanor San Juan, BIR Chief Revenue Officer II. — (FREEMAN)