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Monday, October 18, 2021

BIR padlocks KTV bar, resto in Davao

"WE really do not like to close these business establishments but because of violations, we are forced to. We don't want to close down business, we want smooth operations but they have to understand their business obligations and responsibilities."

This was what Bureau of Internal Revenue (BIR) Davao Region District Officer Rodrigo Rivamonte told reporters a few minutes before they were about to close down Golden Dragon Restaurant KTV and Bar along Sta. Ana Avenue last Thursday night - the second business establishment BIR Davao Region temporarily closed down for the week.

The closure of Golden Dragon Restaurant KTV and Bar was caused by the management's failure to comply with cash register machines - point of sales (CRM-POS) requirements specifically of the audit tapes that must come with the CRM as well as the record book of the POS.

Aside from that, the restaurant bar did not declare about 75 percent of their sales for the entire 2016. Because of this, they have a deficiency of about P23 million for January to December 2016 alone.

As for their basic Value Added Tax (VAT) due particularly for the 1st and 2nd half of 2017, the restaurant bar owes P1.4 million. They needed to pay the 110 percent of the basic tax due amounting to P1.5 million for them to reopen.

The 11-day surveillance of BIR for the place happened and was completed last year. The restaurant bar was supposed to have been closed by December 2017 however the order for closure was just signed recently.

"Actually, earlier today the management had already paid. The receipt is already with us. We are just waiting for this (closure) so we can pay," said Operations Manager Ritchie Sabrine.

Rivamonte said the closure of business establishments is being done by BIR-Davao for the good of the Dabawenyos as well.

"If they don't pay the right amount of their taxes, the most affected are the Dabawenyos because our collection here will go back to the city government of Davao in the form of Internal Revenue Allotment (IRA). Whatever we pay here, whatever we collect here, will go back to the city. That is why it is important that we be supported of the tax collection efforts," said Rivamonte.
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