BIR padlocks garments business for tax evasion

The Bureau of Internal Revenue (BIR) has padlocked a business establishment in Mandaluyong City for failing to settle its tax obligations. BIR Commissioner Kim Henares said in a statement the agency closed the ABC Star Commodities Inc.’s sales office because it failed to pay correct income taxes, including value-added tax (VAT), for 2007 and 2008. According to the BIR, the company understated its sales by P9.2 million or 60.39 percent for taxable year 2007, and by P11.7 million or 96.62 percent for 2008. The firm is a wholesaler and distributor of men’s, ladies’, and children’s garments, according to its website. GMANews.TV called its office before posting this story, but nobody picked up the phone. The BIR said the two-year tax liability of ABC Star amounted to P4.59 million — P2.14 million in 2007 and P2.45 million in 2008. ABC Star failed to settle its dues despite the 48-hour notice issued by the bureau’s Revenue District Office No. 41 in Mandaluyong, Henares said. The BIR later issued a five-day VAT Compliance Notice. BIR Deputy Commissioner Nelson Aspe issued the closure order after ABC Star failed to comply with those notices. The closure of ABC Star is part of the BIR’s “Oplan Kandado" project, aimed at shutting down erring business establishments. Pressured to boost its collections, the BIR is stepping up its campaign against tax evaders. The BIR is tasked by the Aquino administration to collect P860 billion this year. But Henares already conceded that the agency would only achieve its original revenue goal of P830 billion. — JE/VS, GMANews.TV