BIR shutters Cavite construction firm for underdeclaring taxable sales | Inquirer News

BIR shutters Cavite construction firm for underdeclaring taxable sales

By: - Reporter / @bendeveraINQ
/ 06:41 PM May 21, 2015

The Bureau of Internal Revenue (BIR) has closed down a construction firm in Cavite province that had been found underdeclaring its taxable sales.

In a statement on Thursday, the BIR reported that it shuttered on May 14 Jims Engineering and Construction (Jimsec), a contractor engaged in construction activities based in Silang town, for violating the National Internal Revenue Code of 1997 or the Tax Code.

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The BIR said Jimsec, owned and operated by a certain Ronald Galvez Matanguihan, was discovered to have failed to reflect its correct taxable receipts for the year 2011.

During its investigation, the BIR found out that the company “substantially underdeclared” its taxable sales/receipts by 1,063.38 percent, equivalent to P67.40 million in unpaid taxes.

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“The case against Jimsec was a result of the validation of data gathered from third party information conducted by revenue officers of Revenue District Office No. 54A, Trece Martires, South Cavite, which affirmed that, indeed, the business establishment was not declaring its correct sales subject to value added tax (VAT) and is therefore not paying the correct internal revenue taxes,” the BIR said.

Even as Jimsec had been given a 48-hour compliance notice as well as a five-day VAT compliance notice, the company remained noncompliant and was unable to rectify the BIR’s finding, hence the implementation of a closure order issued by BIR Deputy Commissioner Nelson M. Aspe.

The BIR closes down tax-deficient establishments under its Oplan Kandado program.

BIR Commissioner Kim S. Jacinto-Henares earlier said that Oplan Kandado as well as the Run Against Tax Evaders (RATE) program have been “consistently among the top priority” programs of the tax collection agency, as these have had “a significant impact on the attainment of the revenue goal.” RATE brings alleged tax evaders to court.

This year, the BIR aims to collect P373.831 billion from the 12-percent VAT slapped on goods and services. SM

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TAGS: BIR, Bureau of Internal Revenue, Business, construction firm, Jims Engineering and Construction, Jimsec, Kim S. Jacinto-Henares, National Internal Revenue Code of 1997, News, Oplan Kandado, RATE, Regions, Ronald Galvez Matanguihan, Run Against Tax Evaders, shutdown, Tax code, Tax evasion, under-declaration of taxable sales
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