BIR closure of 5 outlets of company suspended

The Bureau of Internal Revenue (BIR) has ordered the closure of five outlets of Unitop General Merchandise Inc. in Cebu and Bohol for underdeclaring sales last year.

“We are ready to implement the order, but we got a call telling us to hold the enforcement,” Rodita Galanto, BIR regional director, said in a phone interview. She said she received the call from the office of BIR Commissioner Kim Jacinto-Henares.

The closure order was signed on November 18 and issued by Nelson Aspe, the agency’s deputy commissioner for operations. It arrived in Galanto’s office on Friday,

Unitop, which has outlets in the cities of Cebu, Mandaue, Lapu-Lapu and Talisay in Cebu province, and in Tagbilaran City in Bohol, reportedly underdeclared its sales by more than 30 percent. Its head office is located in Valenzuela City.

“The amount of sales declared in the income tax was different from that obtained through BIR surveillance,” Galanto said in Filipino.

She said the company owes the government P97 million in value-added tax due for 2010.

Galanto said a Unitop representative went to Henares on Monday morning and promised that the company would pay the amount by installment, with P50 million as first installment.

She said her office would wait for further order from the office of Henares.

The BIR launched “Oplan Kandado” to intensify its enforcement operations through strict imposition of administrative sanctions for noncompliance with the basic tax requirements.

Under this campaign, business operations can be suspended or temporarily closed on several grounds, including understatement of taxable sales or receipts of the correct amount of taxes by 30 percent or more in the case of a VAT-registered or registrable taxpayer.

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