BIR shuts down business of Pan de Pugon founder

The Bureau of Internal Revenue shut down the bakery, food express, and drinking water business outlets of the founder of Pan de Pugon for fraudulent tax declarations. The BIR padlocked four business establishments owned by cosmetic surgeon and entrepreneur Rosario Ballecer-Antonio who offers Pan de Pugon franchises to prospective entrepreneurs. Two KRG’s Pan de Pugon outlets located along EDSA in Pinagkaisahan, Quezon City and along Shaw Blvd. in Mandaluyong City were closed down. Also halted operations were Antonio’s Best Drink Water Stations, located along Shaw Blvd. in Mandaluyong City and KRG’s Blends and Breads at G. Araneta cor. Landragon Sts. in Quezon City. Pan de Pugon originally started in Manila with Prospero Antonio and Dr. Antonio as the franchiser. KRG’s Pan de Pugon is an offshoot of Kaye Ryan Grill Restaurant which was established in July 2000. As a related business, the company opened, in February 2002, the first bakeshop, the main product of which is Pan de Sal within the grounds of KRG Shaw Boulevard branch. Antonio is also the owner of a Shell gasoline station in La Loma, Quezon City where she holds her principal place of business. The closure of the establishments should serve as a warning to other erring taxpayers, said Jonas Amora, Quezon City BIR assistant regional director. “Please do not force us to impose the sanction of closure. The repercussions are of great magnitude. It impacts not only the subject taxpayer but also those in the community as well. Business is also a social undertaking and as such, we do not want the effects of closure to adversely affect others in the business chain. We only want to collect the correct taxes, nothing more beyond that," Amora said. Violations include failure to file value added tax returns and failure to pay the correct VAT, failure to pay correct income tax, failure to issue receipts or invoices, and attempt to evade or defeat tax. The BIR said the four business establishments of Antonio underdeclared sales by 100 percent for two years. Underdeclaration of the outlets’ sales amounted to P5.403 million in 2007 and P3.653 million in 2008. The tax agency also added that the total estimated VAT liabilities of the four business establishments amounted to P1.086 million for 2007 and 2008. Antonio’s camp claimed that the four establishments were covered by the exemption provided for registered Barangay Micro-Business Enterprises thereby exempting the outlets from the said taxes. But the BIR insisted that the business establishments were not qualified as BMBEs even with the presentation of an expired certificate to back up said claim. In a statement, the BIR said Antonio even offered to settle her liability with the agency after realizing the adverse effects of the closure not only upon the survival of her businesses. The entrepreneur also realized the impact of the closure of her businesses on the employees who stand to lose their means of subsistence and livelihood. The closures were implemented after Antonio failed to comply with the 48-Hour Notice and Five Day VAT Notice issued and served by the BIR. The notices gave her the opportunity to explain her side and present evidence to refute the BIR findings. -GMANews.TV