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Freeman Cebu Business

BIR-13: Four noncompliant businesses may face closure

Carlo S. Lorenciana - The Freeman

CEBU, Philippines - The Bureau of Internal Revenue-13 in Cebu City might close down four establishments this year for failing to comply with some tax requirements.

BIR Regional Director Hermeno Palamine revealed the four companies were already given notices, asking them to comply with certain requirements or so the agency will have to shut them down.

"They are under review. There are assessments," Palamine said in an interview.

Palamine, however, declined to disclose the locations and types of these enterprises but said they are all in Cebu province. This is to keep the element of surprise of BIR's "Oplan Kandado" program.

"We observe due process [in Oplan Kandado]," the revenue official said.

Jose Hector Baronda, assistant legal chief of BIR-13, said the four are under surveillance.

Baronda said the decision to close down an establishment should come from the Office of the Deputy Commissioner after a thorough review of the documents on the violations of the concerned taxpayer.

Palamine added the BIR can also file a tax evasion case against a taxpayer if he or she fails to pay his or her tax obligations.

Last year, BIR-13 padlocked a Korean restaurant in Cebu City, the Blu Tops, for failing to pay P5.8 million in taxes.

It was in 2009 when the BIR issued Revenue Memorandum Order 3-2009 to implement a nationwide "Oplan Kandado" program.

Under the program, business operations of non-compliant taxpayers will be suspended and their establishments will be temporarily closed if they will be found to have violated certain tax laws.

Business operations can be suspended or temporarily closed for the following grounds: failure to issue receipts or invoices by a VAT-registered or registrable taxpayer; failure to file a VAT return; understatement of taxable sales or receipts by 30% or more; or failure to register.

The BIR said the closure of a business shall last for a period of my less than five days and shall be in force until the violation is rectified by the concerned taxpayer.  (FREEMAN)

BIR BLU TOPS BUREAU OF INTERNAL REVENUE CEBU CITY JOSE HECTOR BARONDA OFFICE OF THE DEPUTY COMMISSIONER OPLAN KANDADO PALAMINE QUOT REGIONAL DIRECTOR HERMENO PALAMINE REVENUE MEMORANDUM ORDER
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