CITY OF SAN FERNANDO -- A computer shop was padlocked Thursday, May 4, by the Bureau of Internal Revenue (BIR) for failure to pay its tax obligation amounting to P5.24 million for a period of three years.
The BIR through Revenue District Office No. 21B, South Pampanga of Revenue Region No.4 (BIR-RR4), City of San Fernando padlocked PC City Computer Shop, a supplier of computer parts and accessories owned by one Michelle Miclat Gorospe, after it allegedly failed to subject its taxable sales to the Value Added Tax (VAT) from 2013, 2014 and 2015.
The shop, according to the order signed by Commissioner Caesar Dulay, was closed for its failure to comply with the specified 48-hour notice and 5-day VAT Compliance Notice. The shop has business address at Unit C Limjoco Building, San Agustin, City of San Fernando, Pampanga.
Section 115 of the National Internal Revenue Code of 1997, as amended, requires businesses to subject their taxable sales to VAT.
The BIR-RR4 said it discovered that the shop exceeded the VAT threshold amount of P1,919,500 during taxable years 2013, 2014, and 2015 by posting gross sales/receipts of P5,121,086.33, P10,693,729.00 and P20,159,783.00, respectively.
But it failed to register as VAT taxpayer and consequently, failed to file the required VAT returns and pay the VAT due on its taxable sales/receipts.
As a result, the shop incurred a tax deficiency in the years 2013 (P876,905.36), 2014 (P1.6 million), and 2015 (P2.7 million) .
Section 115 of the Tax Code, as implemented through Revenue Memorandum Order No. 03-2009, authorizes the BIR to suspend or close the business operations of a taxpayer for a period of not less than five days for failure to: (1) register; (2) issue VAT official receipts or sales invoices; (3) file correct VAT returns; or (4) pay the correct VAT.
The recommendation was concurred by the Regional Evaluation Board of Revenue Region No. 4 Quezon City headed by Regional Director Jethro Sabariaga.
The closure was made pursuant to the Oplan Kandado Program of the BIR.
It is the first for the year for RDO 21B, which has been sending reminder letters to taxpayers and has been collecting VAT from taxpayers who complied to these letters.
Many other establishments and taxpayers are being eyed as subject to Oplan Kandado.