FOUR branches of Corbita Tuna Kamayan Grills in Davao City were temporarily closed down by the Bureau of Internal Revenue (BIR)-Davao for underdeclaration of their sales in 2016 and this year.
BIR-Davao regional director Nuzar Balatero said the closure of Tuna Kamayan Grills' branches in Artiaga Street, Duterte Street, Matina, and Roxas Avenue was because of under-declared sales of the restaurants which amounted to a total of P24 million -- P18 million under-declared sales for 2016 and P6 million this year.
"We computed their VAT deficiency for the year 2017. The basic VAT deficiency is P684,000 and they have to come up with P752,000 so that they can pay the VAT deficiency then we reopen the four branches. We will wait until such time they can be fully paid," Balatero said.
While the restaurants are closed, he said they are still going to be under investigation for their VAT deficiency for 2016. If not considering the input taxes, Balatero said their VAT deficiency will be at a minimum of P2 million for 2016. This amount may still change depending on the results of the investigation. Through the issuance of letter of authority, they will investigate the 2016 VAT liabilities of the taxpayer.
Balatero clarified that the amount of their VAT liability may vary or might even be lessened if the taxpayer is able to present documents such as purchase invoices which would prove payment of their input taxes.
Balatero added they had been investigating Tuna Kamayan Grills early this year. Aside from under-declaration of sales, Tuna Kamayan Grills may also be penalized for non-issuance of receipts.
"They have not issued receipts so they have under-declared sales. Non-issuance (of receipts) is a separate violation. Sometimes there would just be customers who would complain or they would actually be caught not issuing. We can penalize them separately. We give penalties - first offense P10,000; second offense P20,000; third offense closure," Balatero said.
In an earlier interview with BIR Revenue District Officer Rodrigo Lizada Rivamonte, Oplan Kandado is conducted by their office if there is a 30 percent sales under-declaration by the establishments.
"There are three other ways to close the establishments: first, the lack of registration; second, is the non-issuance of receipts and invoices, and the third one, is misdeclaration," Rivamonte said.
Just last month, October 3, Ahfat Seafood Plaza along J.P. Laurel Avenue was also temporarily closed down by BIR Davao due to tax delinquency with VAT liability amounting to P31 million from 2015 to 2017. The said Chinese restaurant reopened after a few days.
Balatero said in the coming weeks they are scheduled to temporarily close down two or three more food business and restaurant establishments in Davao City with similar violations.