BIR warns businesses: Declare correct earnings or face closure

Business establishments must comply with their tax obligations or face closure, the Bureau of Internal Revenue (BIR 11) warned.

Alberto Olasiman, BIR 11 director, said all businesses are mandated to truthfully declare their sales and pay their corresponding taxes.

The BIR 11 covers all revenue district offices in the island of Panay.

The agency has authorized representatives who conduct surveillance operations to identify business establishments that violate tax laws.

Last week, the BIR 11shut down three branches of a merchandising business for under-declaring its income and for failing to pay the right taxes.

New Ginzu Merchandising’s main branch is located on Ledesma Street in Iloilo City. The two other branches are in the towns of Pototan and Miagao.

The closure order was issued by Arnel Guballa, BIR revenue deputy commissioner for operations. They were assisted by personnel of the Iloilo City Police Office (ICPO) and the Iloilo Police Provincial Office (IPPO).

According to Guballa, the closure was a result of a tax surveillance conducted in July this year.

“We found out that they have big understatement in their sales,” he said.

New Ginzu Merchandising was given five days to  settle its tax obligations but it failed to do so.

Guballa said the establishment was found to be at least 30 percent short of the correct sales.

The BIR 11 will lift the closure order and allow New Ginzu Merchandising to reopen if the latter pays its deficiency taxes.IMT