BIR padlocks Mall of Asia restaurant for tax evasion

MANILA, Philippines - The Bureau of Internal Revenue (BIR) shuttered a restaurant located at the Mall of Asia in Pasay after it was allegedly found to have understated taxable sales or receipts by more than four times during the last three years. The tax agency closed down Janetnjo Food Corp. after it failed to disprove the findings of revenue district office (RDO) no. 51 in Pasay City within the required 48-hour period and the five-day value-added tax (VAT) compliance notice. The BIR claimed Janetnjo understated taxable sales by 412.55 percent, amounting to P37.62 million, BIR Makati City regional director Alfredo V. Misajon said in a statement issued on Friday. “Bistro Tuscano’s failure to rectify its violations after it was given the chance to do so shows its disregard of the country’s tax laws and non-submission to the BIR’s authority," Misajon added. Based on the cash register reading conducted by the Pasay RDO, the BIR found out sales per VAT returns filed by the company were much lower at P9.11million since 2006 to 2008 than actual sales computed by the government at P46.73 million. The BIR warned other establishments to be honest in their tax declarations to avoid facing closure. "The fate of the subject corporation should serve as a motivation for other violating taxpayers to mend their ways, lest they will suffer the same unpleasant experience of being padlocked before the eyes of the public. Many more taxpayers are in the pipeline, ready to be padlocked if they do not clean up their acts," revenue district officer Josephine S. Virtucio said. The restaurant’s closure is part of the agency’s Oplan Kandado, a program implemented this year by Commissioner Sixto S. Esquivias IV to strictly enforce sanctions against business establishments continuing to commit tax fraud. Among those previously padlocked by the BIR include La Suerte Grocery & Bakery in Magalang, Pampanga for failure to declare more than P50 million income in 2008; Charmy Food Phils. Inc., a manufacturer of soybean products in Pasig City for undeclaring P40 million of its sales for 2005-2008; and Arra’s Fine Dining, a Korean Restaurant in Makati City for understatement of its taxable sales in 2008 by more than P20 million. Other establishments were Hilton Mart Corp., a grocery plying its trade in Manila for underdeclaring its sales for taxable year 2008 by more than P1.2 billion; Skywater Enterprises in Davao City for underdeclaring its sales by P12.590 million in 2008, Wil-An Mart, a wholesale and retail grocery business in Manila, with sales underdeclaration in 2008 of P142.47 million; Han Nan Food Corp., a popular Chinese restaurant in Mandaluyong City for underdeclaring its sales in 2007 and 2008 by more than P27 million. Also shuttered were Murray’s Wine-Burger Corp. located at Serendra, Bonifacio Global City for underdeclaring its sales in 2009 by P4.6 million and Raiko 10-28 Bar & Restaurant, also known as Ratsky, located at Tomas Morato, Quezon City for failure to declare more than P24 million sales in 2007, 2008, and January and February of 2009. - GMANews.TV