BIR shuts down hardware shops in San Juan

The Bureau of Internal Revenue (BIR) padlocked the operations of two hardware stores based in Pinaglabanan, San Juan for understating nearly their entire sales last year, Quezon City assistant regional director Jonas Amora said. Ordered closed were Y2K Tools Center and Screw Wercs General Merchandise, both owned by a certain Richard Andrew Cheung Lee, for allegedly understating by 82.83 percent their sales. This is the first under the Oplan Kandado Program initiated by BIR Commissioner Sixto S. Esquivias IV for revenue district office 42 in San Juan. The closure orders were signed by Esquivias after the hardware stores failed to comply with the 48-hour notice and five-day value-added tax (VAT) notice issued to explain their side and dispute findings. Based on the surveillance work done by revenue district office no. 42, Lee declared per tax return of P2.96 million for the two establishments. This was 82.83 percent lower than the sales per surveillance of P17.23 million in 2008. "Mr. Lee's failure to comply with tax laws and inability to rectify his violations after he was given the chance to do so gave us no choice but to impose the ultimate penalty of closure under the program," Amora said. Aside from understating sales, Lee failed to keep books of accounts at the place of business, pay correct VAT, supply correct and accurate information while attempting to evade or defeat tax along with perjury. - Ruby Anne M. Rubio, GMANews.TV