At A Glance
- The Bureau of Internal Revenue (BIR) has padlocked over 100 outlets of a popular household appliance chain store.<br>The closures are due to allegations of using unregistered or tampered Point of Sales (POS) machines.<br>It is believed that the use of unauthorized POS systems with sales suppression devices led to underreported sales and reduced tax obligations.<br>BIR Commissioner Romeo D. Lumagui, Jr. issued an official order for the closure of these outlets.<br>Lumagui emphasized the importance of proper registration and non-tampering of POS machines.<br>The closures serve as a reminder to all businesses to register their POS machines and avoid manipulation.<br>Regional directors and district officers have been directed to investigate businesses involved in tax fraud.<br>Surveillance operations revealed that the sales machines were reporting only 25 percent of actual sales, resulting in reduced taxable sales.
The Bureau of Internal Revenue (BIR) has padlocked more than 100 outlets of a popular household appliance chain store across the country.
This step was taken due to allegations of these stores are using either unregistered or tampered Point of Sales (POS) machines, resulting in significant tax revenue losses for the government.
BIR Commissioner Romeo D. Lumagui, Jr. has issued an official order for the closure of these outlets. They have been accused of employing unauthorized POS systems equipped with sales suppression devices to underreport their sales, ultimately decreasing their tax obligations.
Lumagui emphasized the importance of businesses registering their POS machines properly and refraining from any tampering with these crucial devices.
"This nationwide closure of a chain of shopping centers is a reminder to all businessmen to register their POS machines and not to tamper with the machines," Lumagui stated in a press statement.
Furthermore, the BIR chief has directed regional directors and district officers to conduct thorough investigations into all businesses potentially involved in this form of tax fraud, as it involves the significant under-declaration of sales.
During surveillance operations, BIR revenue officers unearthed that these sales machines were only reporting a mere 25 percent of the actual sales, resulting in a substantial reduction in taxable sales.
Under the value-added tax law, businesses underreporting their sales by 30 percent or more can face the consequence of having their operations suspended until they settle their tax liabilities.