Revenue office closes Tarlac hardware store
May 13, 2011
CITY OF SAN FERNANDO — The Bureau of Internal Revenue (BIR) on Thursday closed one of the biggest hardware stores in Tarlac province as part of its renewed Oplan Kandado Program.
BIR regional director Romulo Aguila Jr. told Sun.Star Pampanga that they have implemented the closure order against Cedasco Lumber and Hardware Construction Supply owned by one Rodolfo Enalbes Chu.
Aguila said the establishment was found to have not been paying the right amount of taxes in violation of the provisions of the National Internal Revenue Code of 1997.
He said that the Oplan Kandado program has been very successful in running after tax delinquents since it started its first operation in the province two years ago.
The BIRβs Oplan Kandado program is an intensive campaign, which seeks to padlock businesses with unpaid tax dues, as well as those who are engaged in illegal practices such as failure to register, understatement of taxable sales by more than 30 percent and the refusal to issue receipts.
It is also designed to instill the “fear factor” on non-compliant and recalcitrant taxpayers. Based on experience, according to BIR, under-declaration can go as high as 82-90 percent.
Aguila said the tax delinquent establishments in Pampanga are now undergoing review. After the review, the board sends a 48-hour notice to inform the taxpayers of the findings. If the taxpayer doesn’t agree that the under declaration is more than 30 percent, then he should submit documentary evidence to prove such.
If the taxpayer refuses, neglects or fails to submit a response within two days (48 hours), submits an insufficient reply, refuses, neglects or fails to comply with the terms of the five-day voluntary compliance notice, then the Board prepares a memorandum recommending for closure for the approval and signature of the commissioner.
A taxpayer is given five days to voluntarily comply with the requirements and payments before the closure order is served. Aguila said the recently closed establishments would have to pay the necessary taxes to avoid further legal ramifications.
The Oplan Kandado program has closed close to three dozen establishments in Pampanga, Tarlac, Bataan and Nueva Ecija, according to BIR records.
Source: http://www.sunstar.com.ph/pampanga/local-news/2011/05/12/revenue-office-closes-tarlac-hardware-store-155141
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