BIR PADLOCKS FIRST TAX VIOLATOR IN ILIGAN CITY

ILIGAN CITY (07-30/09) – History in the industrial city of the south will remember Hong Jek Yangze Merchandise – Iligan Branch along Quezon Avenue as the first local business establishment ordered closed by the Bureau of Internal Revenue for non-compliance and serious violation of various tax regulations. Its main office and other branches in Cagayan de Oro City were also simultaneously closed.

Assistant Regional Director Mamapok G. Diro together with Revenue District Officer Casan P. Azis and the BIR personnel of Revenue District No. 101, Iligan City closed down said business establishment owned by Chinese trader, Antonio Lim, the other week, for failure to comply with the 48-hour Notice and five (5) day VAT Notice to explain his side and dispute the findings thereto after being placed under surveillance for 15 days by the tax bureau.

“The days are numbered for tax cheats” disclosed Revenue District Office Casan Azis. He further asserted “ This undertaking is unpopular (“Oplan Kandado”) considering the volatile situation in Iligan City but the full force of the law has be applied on erring taxpayers to spare the compliant one”. It is “actually leveling the playing field with compliant taxpayers”, stressed Regional Director Esmeralda M. Tabule.

Iligan City has been rocked with two bombing incidents for the past six (6) months.“Oplan Kandado” is a flagship project of BIR Commissioner Sixto S. Esquivias IV aimed at literally shutting down firms to instill fear among those who fail to pay the correct taxes.

Under Section 115 of the National Internal Revenue Code of 1997, as amended and Revenue Memorandum Order 3- 2009, business operations of non-compliant taxpayers will be suspended and their establishments will be temporarily closed on the following bases : failure to issue receipts or invoices; failure to file a value added tax (VAT) return, understating taxable sales or receipts by 30 percent or more of the correct amount in case of a VAT-registered taxpayer or failure to register the business.