The Bureau of Internal Revenue (BIR) said Friday, Oct. 22, that it has padlocked 322 businesses nationwide during the first nine months of the year mostly for non-registration and non-issuance of receipts or invoices to their customers.
However, BIR Deputy Commissioner for Operations Arnel SD. Guballa told Department of Finance (DOF) Secretary Carlos Dominguez III that most of the shuttered establishments were allowed to resume operations after settling deficiency taxes totalling to more than P1.8 billion.
Guballa said the closure operations were carried out under the agency’s “Oplan Kandado” program.
He said it was part of President Duterte’s instructions to intensify the anti-tax cheating campaign of business establishments to raise more funds and support the increasing budgetary needs of the government.
The BIR is allowed under the Tax Code to suspend business operations of a certain establishment for five days or more until their liabilities are settled.
It was initiated in 2009 to maximize voluntary payment of taxes.
A business is liable to be closed if it fails to register as a value-added taxpayer, issue invoices, file VAT returns, and under declare sales by 30 percent or more.