THE Bureau of Internal Revenue (BIR) in Davao Region closed down eight business establishments in the region simultaneously, seven of which are in Davao City and one in Mati City, on Monday through the Oplan Kandado Program.
Newly-appointed Davao City Revenue District Officer (RDO)-113 West district Simplicio V. Cabantag Jr. said these companies, which are all owned and operated by taxpayer Arnold S. Fontilla with business name "Jeying General Merchandise", violated the Republic Act 8424 or Tax Code of 1997, specifically the under-declaration by more than 90 percent of their sales, non-issuance of official receipts and issuance of unregistered receipts.
"The Jeying General Merchandise failed, refused and neglected to comply with the requirements specified in five days Value-Added Tax (VAT) compliance Notice No. 19152 and the 48-hour notice released by BIR," Cabantag said.
One of the seven establishments in Davao City closed is the Jeying General Merchandise's branch, the 8.PO General Merchandise located at DCLA, R. Magsaysay Ave., Davao City.
Jeying General Merchandise has a VAT liability of more than P1 million. It has a more than 90 percent under-declaration rate which could be translated to over P5 million.
"Under the law, these establishments will be closed for about five days and it will continuously be closed if they will not pay their VAT liability, it will only be lifted once these companies comply with their obligations," Cabantag said.
"Surveillance will be ongoing all over the region," he added.
The BIR will also conduct post-checking on the compliance of the tax violators.
Cabantag added that they are recommending more business establishments to be temporarily close for violating the Tax Code through their Oplan Kandado Program.
Under the Oplan Kandado Program, business operations will be suspended or temporarily closed by BIR on the following grounds: failure to file a VAT return; understatement of taxable sales or receipts by 30 percent or more of the correct amount thereof in the case of a VAT-registered or registrable taxpayer; or failure to register.
Cabantag also pointed out that as far as tax collection is concerned in his district they are performing well as they exceeds last year's record for about 25 percent more in tax collection.
He emphasized that the BIR is continuing its goal through proper implementation of the bureau's programs, one is this Oplan Kandado, and the Run Against Tax Evaders program, among others.