Friday, February 22, 2019

BIR hot on lechon business

THE Bureau of Internal Revenue (BIR) is now looking into the taxes paid by owners of “lechon” businesses to find out why the taxes paid by this big industry is much lower than expected.

BIR 13 Director Hermino A. Palamine said they did not receive any order from their BIR central office in Manila to investigate lechon owners, contrary to reports.

He said they are investigating lechon business owners in Cebu and Bohol as a normal, regular and continuous activity.

“This is a regular audit (on whether taxpayers are honest in paying taxes). Lechon is really a big business but the tax paid is not sufficient,” Palamine said.

The BIR director said the investigation on the taxes of lechon owners is like the inquiry they are conducting on professionals.

He said the BIR has to double-check the income taxes paid by lechon owners and professionals because the government revenue agency relies only on declarations.

If the lechon owners and the professionals will not declare their true income, the government will be shortchanged, and this is a criminal act, Palamine said.


The BIR in Manila placed a paid ad with a newspaper stating that there are several lechon business owners who did not pay taxes, namely Elars Lechon, Sabroso Lechon, Hecky’s Lechon, Aling Loring’s Lechon, Jiro’s Lechon, and Cris Native Lechon.

The national daily also reported that two lechon sellers identified as Three Little Pigs and Rico’s Lechon of Cebu filed income tax returns for the year 2012, but paid zero taxes.

Those who paid taxes for 2012 were CnT Lechon, P465,270; Ulcing’s Lechon, P123,255; Ping-Ping’s Lechon, P93,456; Charlie’s Pritchon, P67,282; Lydia’s Lechon, P47,017; Zubuchon, P32,697; and June and Jun’s Lechon, P17,529.

However, the blog of Marketman criticized BIR for placing the newspaper ad without presenting the real facts, hence cast aspersion and insults on corporations.


For example, contrary to the paid ad of BIR that Zubuchon only paid P32,697 in taxes for 2012, Zubuchon paid P2.99 million in output taxes, P1.87 million in input value-added tax (VAT) taxes due to the heavy equipment purchase and construction rentals, and P1.12 million in net VAT.

The blog said the BIR erred in that paid ad because Zubuchon, for the first 11 months of 2013, paid P7.2 million in VAT output tax, P3.1 million in VAT input tax, and P4.1 million in net VAT.
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