Revenue District Officer Teodoro G. Galicia echoed Santiago’s sentiment. He quipped, “The subject corporation was not faithful in its VAT declarations when it did not report for purposes of VAT the amount of sales it has actually declared in its income tax return. Its non-filing and non-payment of VAT indeed challenged the authority of the BIR. We had no choice but to close it down with its repeated failure to comply despite extensions of time to comply granted and enough leniency given by the BIR.”

Pursuant to its continuing Oplan Kandado program, the Bureau of Internal Revenue (BIR) today shuttered a business establishment located at 22 Scout Santiago St., Barangay Laging Handa, Quezon City after the latter had been found to have violated the National Internal Revenue of 1997, as amended (Tax Code), foremost of which is the non-declaration of (its) sales by 100% for VAT purposes.

FORMAPLY INDUSTRIES, INC., a corporation registered with Revenue District Office (RDO) No. 49, North Makati, with business address at No. 7, Galaxy Street, Bel-Air Village, Makati City, was charged for failure to file Value-Added Tax (VAT) returns and pay the corresponding VAT due thereon.

The discovery was the result of the No VAT Returns Filed Program of RDO No. 49. A routine verification disclosed that FORMAPLY was one of those who did not file their VAT returns. Through the program, revenue officers of the said RDO discovered that the registered address of the company was residential in nature. Ocular inspection made by the same officers also revealed that the subject taxpayer was conducting its business operations in the abovementioned address in Quezon City. The said operations branch was verified to be unregistered with the BIR.

Results of verification made by RDO 49 field men showed that the company did not report for VAT purposes its sales by 100% amounting to P64,602,984.70 for the taxable year 2008.

FORMAPLY was padlocked pursuant to a Closure Order signed by BIR Deputy Commissioner Gregorio V. Cabantac following the failure of the company to explain its side and present evidence to dispute the above-mentioned BIR findings as indicated in the 48 Hour Notice and Five Day VAT Notice.

Revenue Region (RR) No. 8, Makati City Regional Director Jaime B. Santiago said that the closure of the said corporation again manifested his region’s resolve to shut down businesses which continue to violate tax laws in spite of pleas from the tax agency for them to mend their ways. He said, “They have been forewarned but still, they failed to listen.”

Revenue District Officer Teodoro G. Galicia echoed Santiago’s sentiment. He quipped, “The subject corporation was not faithful in its VAT declarations when it did not report for purposes of VAT the amount of sales it has actually declared in its income tax return. Its non-filing and non-payment of VAT indeed challenged the authority of the BIR. We had no choice but to close it down with its repeated failure to comply despite extensions of time to comply granted and enough leniency given by the BIR.”

Also present during the closure proceedings were BIR Deputy Commissioner for the Legal and Inspection Group Gregorio V. Cabantac, RR No. 8, Makati City Assistant Regional Director Manuel Mapoy, and other revenue officials.

Oplan Kandado is a flagship project of the BIR led by Commissioner Joel L. Tan-Torres which aims to strictly enforce sanctions for non-compliance by business establishments with requirements of the Tax Code.