BIR padlocks upscale restobar in Makati-A A +A
Wednesday, June 11, 2014
A MAKATI City watering hole allegedly frequented by popular personalities and foreigners was closed down by the Bureau of Internal Revenue (BIR) on Wednesday for lying on its real income.
In a statement, the BIR said it padlocked Timeless Bar and Restaurant Concepts, Inc. located at Greenbelt 3, Ayala Center for acts and omissions constituting violations of the National Internal Revenue Code of 1997.
BIR's initial assessment of the business establishment's tax liability showed a 213.55 percent underdeclaration of correct taxable sales/receipts. No specific amount was disclosed by the agency.
Records of investigation showed that Timeless Bar and Restaurant was the subject of a Mission Order issued to the Special Investigation Division (SID) of Revenue Region 8, Makati City to determine its compliance with the requirements of the Tax Code.
The BIR discovered during its surveillance and monitoring operations that the restaurant did not report its correct taxable sales/receipts to the agency.
The establishment was notified of the findings and told to make "necessary rectifications", which it failed to do so.
The restaurant also ignored the five-day value added tax (VAT) compliance notice, prompting the BIR to proceed with the padlock operation.
"Both notices required the establishment to amend its previously-filed VAT returns to reflect its correct taxable sales/receipts. It was also ordered to separately indicate VAT Output Tax in its receipts, register Special Purpose Machines, and comply with bookkeeping requirements," it said.
Timeless Bar and Restaurant, the first establishment to be shuttered in Greenbelt, is reportedly owned by scions of well-known politicians, the BIR said. (Sunnex)