FOR under-declaring its income, EGI Resort and Hotel in Barangay Maribago, Lapu-Lapu City was shut down by the Bureau of Internal Revenue (BIR) 13 yesterday morning.

BIR 13 Director Eduardo Pagulayan Jr. said they discovered that the resort did not declare its total income to the agency.

“Gross receipt is underdeclared by more than 30 percent. That’s the violation,” said Pagulayan.

He said the resort management was given sufficient time to explain their alleged violation.

The BIR sent a 48-hour notice of violation and notice of compliance but EGI did not send any reply.

“Siguro matagal na (nilang gihimo), matagal na silang (EGI) nag-exist. I believe the establishment has been operating for more than 10 years already,” the director said.

The agency’s surveillance on EGI began last June 25, soon after they noticed discrepancies in the resort’s tax declaration.

EGI is the first hotel establishment to be shut down by BIR 13 since it started implementing Oplan Kandado.

A representative of the resort management said they will comply with the requirements of BIR so they can resume operations.

The management has explained the situation to their quests and requested them to transfer to other hotels until they can resolve the issue. FVQ of Superbalita Cebu