Revenue department padlocks 7 firms in Cagayan de Oro-A A +A
Thursday, September 27, 2012
THE regional office of the Bureau of Internal Revenue (BIR) in Northern Mindanao closed down at least seven establishments in Cagayan de Oro Tuesday for alleged violation on some provisions of the value added tax (VAT) Law.
BIR-Regional Revenue 16 Regional Director Alberto Olasiman identified the establishments as Willshire Inn, King William Inn, Kyross Inn, Will’s Place, Westin Inn, Will’s Bar and Gab’s KTV.
Olasiman said the Willshire Group of Companies Inc. (WGC), owner of said businesses, failed to register the establishments before the regional Revenue department as VAT taxpayer; failed to issue receipts as VAT-registrable taxpayer; and under-declared receipts by 2,153 percent of the correct amount in daily sales.
The closure came following WGC’s failure to submit explanation and comply with the terms and conditions of the biggest collecting agency with its given five-day Vat Compliance Notice (VCN).
Based on BIR’s preliminary investigation, the corporation engaged in operating two hotels, three inns and two bars declared only an average daily receipts of P549 covering all its business establishments.
The BIR then issued a 48-hour notice to WGC informing of the results of the investigation and giving the corporation time to “make necessary rectifications or to refute its investigation.”
However, Olasiman said the company failed to do so.
Olasiman led the raiding team composing of the BIR personnel in serving the closure notice at Willshire Inn on Yacapin Street while closure orders to six other establishments were simultaneously served the same day.
According to Olasiman, the failure of the corporation to comply with the notices led to the issuance of a closure order signed by BIR Operations Deputy Commissioner Nelson Aspe last September 20.
The closure was part of BIR’s Oplan Kandado program aimed at intensifying the BIR’s enforcement operations through strict imposition of prescribed administrative sanctions for noncompliance with the basic tax requirements.
Under the program, business operations of non-compliant taxpayers will be suspended and their establishments will be temporarily closed if found to have violated certain tax laws.
Published in the Sun.Star Cagayan de Oro newspaper on September 28, 2012.