THE Bureau of Internal Revenue (BIR) 11 padlocked seven business establishments in the Davao Region from January to May this year due to tax violation.
BIR Legal Division chief lawyer Monica Delfina Penelope Alvizo told SunStar on Wednesday, May 8, that the closure of these establishments is part of their Oplan Kandado, which serves as a warning to erring businesses in Davao City.
Among the common violations of these establishments is under declaration of sales by more than 30 percent or more. Mostly are hardwares and food establishments.
“Because of the implementation of Oplan Kandado or the closure of erring businesses, there was an increase of voluntary compliance. Mas marami na ang mga new registrants at mas maganda na ang database namin sa tax mapping,” Alvizo said.
“We wanted the public to be aware that we are serious in enforcing our tax laws. It will also be a deterrent or warning against tax violators,” she added.
Tax mapping is a quarterly activity wherein BIR representatives will pay a surprise visit to business establishments to check if they are in compliance with the BIR rules, while the 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 and the refusal to issue receipts.
One of the recent orders of temporary closure by BIR were the Cheat Time Bakeshop branches along Guerrero Street and in Bangkal. BIR, however, assured they will be back in operation after they settle their accounts.
Alvizo said they have given the notice ahead of time and have also given five days for value added tax compliance for these businesses yet still failed to comply.
She said most of the padlocked businesses are already back to operation but will still be under monitoring through tax mapping.