THE Bureau of Internal Revenue (BIR) regional office is set to lead the second wave of closure of three tax delinquent establishments in Central Luzon for 2019.
BIR Regional Director Jethro Sabariaga said that the start of the closure operations is in keeping with the BIR's promise to run after tax delinquent establishments in Central Luzon.
The BIR “Oplan Kandado” is an intensive campaign, which seeks to padlock businesses with unpaid tax dues, as well as those who are engaged in illegal practices such as failure to register, understatement of taxable sales by more than 30 percent and the refusal to issue receipts.
It is also designed to instill the "fear factor" on non-compliant and recalcitrant taxpayers. Based on experience, according to BIR, under-declaration can go as high as 82-90 percent.
Sabariaga, however, said that Pampanga businesses should not fear the Oplan Kandado program as it now shifts operations into the province.
Sabariaga said that the tax delinquent establishments in Pampanga are now undergoing review.
After the review, the board sends a 48-hour notice to inform the taxpayers of the findings. If the taxpayer doesn't agree that the under declaration is more than 30 percent, then he should submit documentary evidence to prove such.
If the taxpayer refuses, neglects or fails to submit a response within two days (48 hours), submits and with insufficient reply, refuses, neglects or fails to comply with the terms of the five-day voluntary compliance notice, then the Board prepares a memorandum recommending for closure for the approval and signature of the commissioner.
A taxpayer is given five days to voluntarily comply with the requirements and payments before the closure order is served.