BIR aborts closure of store’s five branches after P50M fee

Tuesday, November 22, 2011

THE Bureau of Internal Revenue (BIR) was all set yesterday to close the five branches of Unitop General Merchandising Inc. in the region, if not for the call from the office of Commissioner Kim Henares to abort the move because the firm made a P50-million partial payment of its tax liabilities.

BIR 13 Director Rodita Galanto said the Unitop branches that were supposed to be padlocked yesterday are located on Mangubat St., Lapu-Lapu City, D. Jakosalem St. corner Osmeña Blvd., Cebu City, Quezon St., Maguikay, Mandaue City, Tabunok Talisay City, and C.P.G. Ave., Tagbilaran City.

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In a press conference, Galanto said that after a series of surveillances last July on order of the BIR in Manila, Unitop was found to have “under declaration of sales by 30 percent” involving P97 million in tax liabilities.

The BIR sent a five-day notice to the Unitop head office in Valenzuela City but the company ignored it.

The 48-hour closure notice was issued last Thursday and was supposed to take effect yesterday, hence, the business firm was placed under the BIR Oplan Kandado.

Galanto called a media briefing at 9 a.m. yesterday, together with Revenue District Officer (RDO) Rogelio Balaga of the Revenue District Office (RDO) No. 83 in Talisay City, RDO Clotilde Menchavez of RDO No. 80 in Mandaue City; and RDO Evangeline Abanilde of RDO No. 82 in Cebu City South.

During the briefing, the BIR 13 director requested the media to cover the simultaneous closure of the five Unitop branches as suggested by Bel Suelto Jr. of the BIR Finance Department.

Atty. Neri Yu, chief of the BIR 13 legal division, had readied 10 policemen to escort the BIR officials in closing the Unitop branches.

However, a call from the Office of the Commissioner was received by Galanto, informing her that the closure will not push through because the Unitop head office in Valenzuela City paid P50 million in initial settlement.

Galanto said that even though Unitop paid P50 million that aborted the closure, the investigation will continue.

She explained that under the National Internal Revenue Code, there are four reasons why a business firm can be closed. These are the failure to register, failure to issue official receipts, failure to file value-added tax (VAT) return, and under-declaration of sales by 30 percent.

She said Unitop had under-declared sales by 30 percent, probably by not issuing receipts.

The BIR official also warned other establishments that their business operations will be closed if they are found doing something similar to the Unitop case.