“This is not about closing businesses and depriving people of gainful employment. This is all about complying with the provisions of the Tax Code and paying the right taxes due to the government.” - Assistant Regional Director Eduardo L. Pagulayan, Jr.
The Bureau of Internal Revenue (BIR) Revenue Region (RR) No. 3, Tuguegarao City padlocked GUIANG’S STORE located at the New Public Market, Ilagan, Isabela, and KOBE SUPERMART in Santiago City, Isabela for having committed various violations of the National Internal Revenue of 1997, as amended (Tax Code), including gross under-declaration of sales for taxable year 2008.
GUIANG’S STORE, arguably the biggest store in the said market in Ilagan, and KOBE SUPERMART are both engaged in the wholesale and retail of grocery items/products. Guiang’s Store is owned and operated by a certain Aurelia A. Guiang, while Kobe Supermarket is owned and operated by a certain Marvie G. Chua.
The closure of said establishments, which became inevitable after they failed to refute the findings of Revenue District Office (RDO) No. 015, Ilagan, Isabela and comply with the 48 Hour Notice and 5 day Value-Added Tax (VAT) Notice issued and served by the BIR, was implemented after the Closure Orders signed by Commissioner Sixto S. Esquivias IV were served.
RR No. 03 Regional Director Thelma S. Milabao stressed that they tried to help the said businesses comply with the requirements of the BIR to avert closure proceedings but to no avail.
Assistant Regional Director Eduardo L. Pagulayan, Jr. likewise stressed the importance of compliance. He said, “This is not about closing businesses and depriving people of gainful employment. This is all about complying with the provisions of the Tax Code and paying the right taxes due to the government.”
Among the violations cited against Guiang’s Store were failure to register as mandatory VAT taxpayer, failure to supply correct and accurate information, attempt to evade or defeat tax, and perjury.
Surveillance activities undertaken by field men from RDO No. 015 established under-declaration of sales committed by Guiang’s Store of 35.18% in 2008.
Kobe Supermarket, on the other hand, was charged for under-declaration of purchases discovered through Third Party Information resulting to undeclared sales of more than 30% for taxable years 2007 and 2008 (1st quarter).
Under the Tax Code, there is substantial under-declaration of sales receipts/income if the amount of discovered unreported sales is 30% or more than what was reported by the business establishment in its returns filed with the BIR.
RDO No. 015 Revenue District Officer Nerissa Cruz-Agraam under whose jurisdiction the said taxpayers fall had this to say: “These are the first two establishments temporarily shuttered under my jurisdiction. We have two (2) more establishments who are likely candidates for closure before the year ends. Henceforth, we expect our taxpayers to comply and help us collect the taxes due to the government.”
Oplan Kandado is the flagship project of the BIR initiated by Commissioner Esquivias which aims to strictly enforce sanctions for non-compliance by business establishments with the requirements of the Tax Code. (Edited by Reymarie T. de la Cruz, Chief, TIED)
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Please refer to:
(original signed)
GLADYS BORROMEO-GARCIA, Chief, TSS, RDO 015, Ilagan, Isabela (078)622-3030
Approved for Release:
(original signed)
NERISSA CRUZ-AGRAAM, Revenue District Officer, RDO 015, Ilagan, Isabela