THE Bureau of of Internal Revenue (BIR) announced recently that the restaurant business operation of Shanzhen Haiwei Food Corp. (Shanzhen), a registered corporation under Revenue District Office 47-East Makati, located at Salcedo One Street, Legaspi Village, Barangay San Lorenzo, Makati City, was padlocked along with its four branches.
In a statement issued last Wednesday, the BIR identified these branches as located at: 252 Senator Gil Puyat Avenue, Pio Del Pilar, Makati City; Ayala Malls Manila Bay, Barangay Tambo, Paranaque City; Unit L322 3/F One Bonifacio High Street, 28th Street corner 5th Avenue Bonifacio Global City, Taguig City; and, Trade and Financial Tower 7th Avenue corner 32nd Street Bonifacio Global City, Taguig City.
The BIR said that results of the Regional Investigation Division’s surveillance conducted in February 2023 showed that the said establishment failed to register one of its branches, failed to issue registered receipts/invoices and understated its sales by more than 30 percent. These, according to the BIR, are in clear violation of Section 115 of the National Internal Revenue Code (NIRC) of 1997, as amended.
Section 115(b) of the NIRC of 1997, as amended, as implemented through Revenue Memorandum Order (RMO) 3-2009, authorizes the BIR to suspend or close the business operations of a taxpayer for a period of not less than five days for failure to: (1) register; (2) issue VAT official receipts or sales invoices; (3) file VAT returns; or, (4) understatement of taxable sales/receipts by 30 percent or more of correct taxable sales or receipts for the taxable quarter.
Procedural due process was duly given to the said taxpayer by BIR Revenue Region (RR) 8A-Makati City, headed by Regional Director Florante R. Aninag, through the issuance of a 48-Hour Notice to explain the violations, and another 5-day VAT Compliance Notice to rectify the tax payment. However, according to the BIR, the said taxpayer failed to comply with the said notices.
The Closure Order was signed by Deputy Commissioner Maridur V. Rosario after the said establishments failed to comply with the requirements specified in the 5-Day VAT Compliance Notice under Section 115 of the NIRC of 1997, as amended. The closure was implemented under the supervision of Regional Director Florante R. Aninag of RR 8A-Makati City pursuant to the “Oplan Kandado” Program of the BIR under the current leadership of Commissioner Romeo D. Lumagui Jr.