BIR in CDO gets tough: Pharmacy settles obligation after closure of 4 outlets

CAGAYAN DE ORO CITY – The Bureau of Internal Revenue-Revenue Region 16 (BIR-RR16) is on the lookout for business establishments violating the country’s tax laws within its jurisdiction.

It had just compelled a company owning a chain of pharmacies here to settle its tax obligations after closing down four of its outlets.  The company was allowed to resume operations over the weekend after paying its tax deficiency.

Lawyer Dondanon Galera, BIR-RR16 legal division assistant chief, said they have been keeping an eye on businesses in some parts of Northern Mindanao, especially in the cities of Cagayan de Oro, Ozamiz, Iligan, Marawi and the province of Bukidnon, that have not been complying with the agency’s tax requirements.

Last week, a team from the BIR-RR16 and Manila offices padlocked four Rika Drugstore branches all over the city on orders of the bureau’s deputy commissioner for operations Nelson Aspe.

The closure order is part of the “Oplan Kandado” program of the BIR that includes surveillance and notification of establishments found to be violating tax laws, and is based on Revenue Memorandum 03-2009.

The company, Rika Drugstore and Distribution Corp., paid a total of P2.3 million after it was found to have under-declared its taxes by more than 30 percent, prompting the BIR to temporarily close its four outlets, said lawyer Glen Geraldino, BIR-RR16 regional director.

Galera said Rika quickly settled its obligations with the BIR and was allowed to resume their operations over the weekend.

The BIR-RR16 is also looking into businesses that are not truthfully declaring their sales.

“If we can see that a business is booming and yet the owner has paid only percentage tax, meaning, their gross sales for the year have not exceeded P1,919,500, that will give us a lead to conduct an investigation,” Galera said.  SFM