A chain store with 103 branches across the country has reached an agreement to settle its multi-million peso tax debts, leading the way for the resumption of its operations just in time for the holiday shopping rush, as reported by insiders at the Bureau of Internal Revenue (BIR).
According to BIR sources, the store has taken the initiative to begin making payments for some of its outlets in Metro Manila. This includes around P130 million for its five branches in Marikina City, marking a significant step in the settlement process.
It is expected that the company's outstanding liabilities for its other outlets will be addressed in the near future, indicating progress towards resolving the tax issues that led to the closure of its operations.
The simultaneous closure of the chain store's outlets was ordered by BIR Commissioner Romeo D. Lumagui, Jr. This decision came in the wake of alleged under-declaration of annual gross sales and the utilization of unregistered and tampered point-of-sale (POS) machines, which are vital for accurate recording of sales transactions.
Chain store to reopen after tax debt settlement
At a glance
The chain store with 103 branches nationwide has agreed to settle its multi-million peso tax debts, paving the way for the resumption of operations during the holiday shopping rush, according to Bureau of Internal Revenue (BIR) insiders.
The same sources revealed that the store initiated payments of some of its outlets in Metro Manila, including around P130 million for its five branches in Marikina City as part of the settlement process.
The company's indebtedness for other outlets is expected to be addressed soon.
The simultaneous closure was ordered by BIR Commissioner Romeo D. Lumagui, Jr. following the discovery of alleged under-declaration of annual gross sales and the use of unregistered and tampered point-of-sale (POS) machines.
The shutdown was mandated by the value-added tax law due to the significant under-declaration of gross sales by 30 percent and more.
Thousands of the chain store's customers across the country are eagerly anticipating the reopening, particularly for the availability and competitively priced household items and Christmas decorations.
Lumagui emphasized the importance of businesses registering their POS and other counting devices to accurately reflect sales for proper income and business tax collection.
In a previous press statement, he highlighted that the nationwide closure serves as a reminder to all business operators to register their POS systems and avoid tampering.