The Bureau of Internal Revenue (BIR) ordered closed on Monday (March 15) a KTV bar in Makati City for failure to issue value added tax (VAT) receipts, resulting to government losses in VAT revenues.In a statement, BIR Deputy Commissioner for Legal and Enforcement Atty. Gregorio V. Cabantac said the Bureau padlocked Geminus Karaoke Club operating at Unit G, The Gallery Bldg., Amorsolo St., Legaspi Village, Makati City.
“Geminus Karaoke Club, owned by Evelyn Jane Valena Ueda, was cited for using unregistered receipts or invoices, and for failure to secure authority to print receipts, resulting to non-remittance of VAT to the government,” Cabantac said.
On February 17, 2010, the BIR notified Ueda about the results of its investigation and the establishment was given 48 hours to respond to the notice.
“When the owner failed to reply within 48 hours, we issued a VAT Compliance Notice or VCN on February 23, which gave them five more days to reply or refute our investigation. Yet they still did not heed our warning,” he added.
The closure, Cabantac said, is part of the intensified implementation of the BIR’s “Oplan Kandado” Program and the Run After Tax Evaders (RATE) Program, which he both heads.
Last week, the BIR began a series of closures of establishments as part of an intensified campaign to implement both anti-tax evasion programs.
Ordered closed were Formaply Industries, Inc. in Makati City, a Ministop Branch in Pasay City, and B.M. Centre (Phils.) Inc. in Quezon City.