A gas station in Malabon City that had not been issuing receipts was shuttered by the Bureau of Internal Revenue (BIR) last Wednesday.
In a statement, the BIR identified the erring establishment as Subway Gasoline Station, located along M. H. Del Pilar Street in Barangay Maysilo. The BIR said a certain Andres Sim Chua owned the gas station.
According to the BIR, the establishment “failed to issue BIR-registered sales invoices due to its use of unregistered point-of-sales (POS) machines and noncompliance with the use of backup manual sales invoices.”
Not issuing receipts is a violation of the Tax Code or the National Internal Revenue Code of 1997, as amended.
Also, the gas station did not comply with the requirements listed down in the 48-hour notice as well as the five-day value-added tax or VAT compliance notice issued by the BIR.
As such, BIR Deputy Commissioner Nelson M. Aspe issued the closure order, pursuant to Section 115 of the Tax Code.
The gas station was slapped penalties worth P118,000, Reymarie T. de la Cruz, chief of the BIR’s public information and education division, said in a text message. “As for the tax liability, since there were no POS machines and receipts issued, it is still being established through other obtainable means like third-party information,” he added.
The BIR padlocks tax-deficient establishments under its “Oplan Kandado” program.
The Oplan Kandado and Run Against Tax Evaders (RATE) programs are among the priority programs of the country’s biggest tax-collection agency, as these have “significant impact to the attainment of the revenue goal,” according to BIR Commissioner Kim S. Jacinto-Henares. RATE brings alleged tax evaders to court.
Early this week, the BIR ordered the use of nonthermal paper receipts by all establishments in the country.
Henares and Finance Secretary Cesar V. Purisima last Monday issued Revenue Regulations (RR) No. 10-2015, which mandated usage of the said type of paper for all cash register machine (CRM), POS machines and other invoice and receipt-generating machines or software.
This rule will immediately apply to newly opened businesses. “All new business registrants with CRM/POS/other similar machines/software with built-in printer for their transactions shall use nonthermal paper only,” RR 10-2015 read.
As for existing establishments, the BIR will give them more time to comply. “Considering the associated costs of transitioning to nonthermal paper, a tiered compliance structure is hereby put in place to allow concerned taxpayers to meet compliance requirements over a three-year period,” it said.
In this regard, the BIR said existing taxpayers with CRM/POS/other similar machines/software that used thermal paper in their daily transactions were subject to the following staggered implementation dates:
· On or before July 1, 2018, for machines registered on July 1, 2014 onwards;
· On or before July 1, 2017, for machines registered from July 1, 2013 to June 30, 2014; and
· On or before Sept. 1, 2016, for machines registered prior July 1, 2012 until June 30, 2013.
The RR also listed down the various information that must be printed on official receipts, sales invoices and other commercial invoices, such as the taxpayer’s registered name and business name, detailed business address, date of transaction, description of the items/goods or nature of service (quantity, unit cost, total cost and value-added tax or VAT amount), among others.
The BIR warned that “any violation of these regulations shall be subject to the corresponding penalties under the pertinent provisions of the National Internal Revenue Code of 1997, as amended, and applicable revenue issuances” of the agency.
In June, the BIR also ordered all establishments to submit an inventory list of their machines that generate sales receipts.
Henares said in Revenue Memorandum Circular (RMC) No. 36-2015 issued on June 8 that the mandatory one-time submission due July 31 was in line with the agency’s efforts to “effectively supervise and monitor the issuance of sales invoices/receipts by business establishments.”
Last May, the BIR stopped issuing of provisional permits for sales machines, citing “abuse” in their use.
“Reports show that the three-month validity period of provisional permits is being abused and a significant number of taxpayers’ provisional PTU [permit to use] failed to be converted to final PTU of their CRM/POS/other sales machines/receipting software,” Henares noted in RMC 30-2015 dated May 28.