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PIA Press Release
2009/06/10

BIR padlocks 4 Davao establishments

by JMD Abangan

Tagum City, Davao del Norte (10 June) -- The Bureau of Internal Revenue (BIR) yesterday (June 9) padlocked four business establishments belonging to one proprietor for non-payment of value added tax (VAT).

Under the Oplan Kandado campaign, BIR Regional Director Perfector Aranas along with Tagum City Revenue District Officer Ester Palala served the closure order signed by BIR Commissioner Sixto S. Esquivias IV to Dolly Dai for under-declaring sales, not paying Value-Added Tax (VAT) as well as for not issuing receipts.

Dai owns Kimlai and Honglai which are both located at Pioneer St. Other establishments owned by Dai that have been closed by BIR are Mandarin Restaurant located along the National Highway and Family Bodega Sales at Quezon Street.

Aranas bared Dai to have under-declared a gross sales of P14.3 million and is therefore liable to pay the government an estimate P1.71 million of VAT.

He, however, told Dai that the Commission would re-open her business establishment if she settles tax payments due to the government.

The closure came after Dai failed to explain within 48-hour why she failed to pay VAT and after she failed to pay her liability despite the five-day grace period given her.

She was caught committing the violations lodged against her through a surveillance operation that BIR conducted in April this year.

Perfecto warned that more business establishments are due to be padlocked but he refused to divulge the number pending proper screening as to their liabilities.

"Those who are not paying VAT and are not issuing receipts, they better pay to avoid closure of their business establishments," he said. "Those who have not registered their businesses, they should register at BIR," he added.

In intensifying Oplan Kandado campaign under Revenue Memorandum Order 3-2009 which seeks to raise collection, Perfecto said Revenue District Office 19 covering Southern Mindanao hit an 89 percent increase in collection in May. (PIA XI) [top]

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