By Jun Ramirez
The Bureau of Internal Revenue (BIR) padlocked Monday afternoon the main and two branches of a popular Chinese restaurant in Makati City for alleged massive under declaration of income.
Closed was the Spicy of Hunan located in Barangay Poblacion, and its branches in Barangay San Antonio, Makati and at the PNB Financial Center along Macapagal Boulevard, Pasay City.
BIR Deputy Commissioner for Operations Arnel Guballa signed the closure order based on the recommendation of Makati Revenue Regional Director Maridur Rosario and North Makati Revenue District Officer Frederico Pilarca.
The BIR field officials said the eatery under-declared its sales by more than 30 percent and using unregistered point-of-sales (point-of-sale) machine.
Both offenses carry a penalty of closure, or suspension of business for five days until the tax liabilities are settled as mandated under Section 115 of the Tax Code.
Ms. Rosario said the BIR is authorized to stop business operations if the taxpayer fails to register, issue value-added tax (VAT) receipt, or invoice, file correct VAT return, or pay correct VAT.
Ms. Rosario said she also recommended the closure after the owner of the restaurant failed to comply with the requirements despite notification.