MUNTINLUPA CITY – The Bureau of Internal Revenue (BIR) through Revenue District Office (RDO) No. 53B, Muntinlupa City of Revenue Region No. 8 (RR-8), Makati City shuttered an LBC subsidiary and its various branches last 24 September 2015 for acts and omissions constituting violations of the provisions of the National Internal Revenue Code of 1997, as amended (Tax Code).
Padlocked was LBC EXPRESS-SMM, INC. located at the Ground Floor Estrellita Building, Alabang Zapote Road, Muntinlupa City. Previously named the Bag Acceptance Corporation, it is a subsidiary of LBC EXPRESS, INC. Likewise shuttered in simultaneous operations involving other RDOs of RR-8 Makati were its thirty-three (33) branches: Taguig City – eight (8); Makati City – One (1); Pasay City – four (4); Parañaque City – six (6); Las Piñas City – eight (8); and Muntilupa City – six (6).
The said closures were effected through the Closure Orders signed by Deputy Commissioner for the Operations Group Nelson M. Aspe after the subject taxpayer failed to comply with the requirements specified in the 48-hour Notice and 5-day VAT Compliance Notice. Specifically, LBC EXPRESS-SMM, INC. was asked to file Value Added Tax (VAT) returns and reflect therein the correct taxable sales/receipts, and pay the correct taxes due thereon, all for taxable years 2013, 2014, and 2015 (January only).
LBC EXPRESS-SMM, INC. was the subject of several mission orders authorizing Revenue Officers of the BIR to conduct a post-evaluation and verification of its seventy-five (75) Point-Of-Sales machines. Results of the enforcement activities showed that the said taxpayer caused the machines to be modified/integrated/altered without prior notification and approval by the RDOs concerned. Further, LBC EXPRESS-SMM, INC. was found to have underdeclared its correct taxable sales by P105.04 million, P27.49 million, and P13.16 million for taxable years 2013, 2014, and 2015 (January only), respectively.
Section 115 of the Tax Code, as implemented through Revenue Memorandum Order No. 03-2009, authorizes the BIR to suspend or close the business operations of a taxpayer for a period of not less than five (5) days for failure to: (1) register; (2) issue VAT official receipts or sales invoices; (3) file correct VAT returns; or (4) pay the correct VAT.
The Revenue District Officer of RDO 53B (Muntinlupa) recommended the closure of the said establishments after the subject taxpayer failed to rectify its violations despite the service of the required notices. The recommendation was concurred by the Regional Evaluation Board of Revenue Region No. 8, Makati City headed by Regional Director Jonas DP. Amora.