Faces of the News: Dunkin’ Donuts

Illustration by Rene Elevera

Amid allegations of a P1.56 billion tax deficiency, Bureau of Internal Revenue (BIR) has announced that it was taking another look at the company’s financial records.

In 2010, a similar claim was made by a BIR examiner who said the company failed to include in its 2007 gross sales report the sales of its sub-franchisees and trading sales (or sales of raw materials to sub-franchisees).

After two separate investigations, the BIR upheld the company’s explanation that those sales, per its agreement with Dunkin’ Donuts USA, are not included in its gross sales report.

Dissatisfied with that decision, the examiner filed a complaint for graft against then BIR Commissioner Kim Jacinto Henares at the Ombudsman.

The complaint was dismissed. The dismissal was affirmed by the Court of Appeals.

No other action has been taken by the examiner in the said case.

On Feb. 20, 2016, the BIR issued a tax clearance stating that the company has no listed tax liability as of Jan. 20, 2016.