Trading company padlocked for underdeclaration of taxable sales

  • Post category:News

NOVALICHES, Quezon City – The Bureau of Internal Revenue (BIR) today padlocked a registered trading corporation and its four (4) branches located in Quezon City and Caloocan City for violating the provisions of the National Internal Revenue Code of 1997, as amended (Tax Code) on Value Added Tax (VAT).

A.R. VITUG TRADING, INC., a registered taxpayer located in Novaliches, Quezon City, was shuttered for understatement of taxable sales or receipts by thirty percent (30%) or more of correct taxable sales or receipts for the subject taxable period pursuant to Sec. 115(a)(3) of the Tax Code as implemented by Revenue Memorandum Order No. 3-2009.

Likewise closed were its four (4) branch offices, namely: V&W Trading in Novaliches; A.R. Vitug Trading, Inc. in Novaliches; Pangarap Trading in Caloocan City; and Vi-Will Trading in Caloocan City.

The subject business establishment and its four (4) branches were the subject of overt surveillance operations conducted by a team of Revenue Officers of Revenue District Office No. 28, Novaliches for the period covering August 27, 2013 to September 6, 2013.

Records of the BIR showed that A.R. VITUG TRADING, INC. is registered as a VAT taxpayer and has filed VAT returns and declared therein taxable sales or receipts, particularly taxable year 2012 and 2013 (first two quarters). Monitoring of its sales for the said taxable periods, however, disclosed that the said trading corporation underdeclared its sales by 82.21% in 2012 and by 78.10% in 2013 (first two quarters).

The closure came after the refusal and neglect of A.R. VITUG TRADING, INC. to comply with the requirements specified in the 48-hour Notice and the 5-day VAT Compliance Notice. Said closure was implemented through a Closure Order signed by BIR Deputy Commissioner for the Operations Group Nelson M. Aspe.

Revenue District Officer Aldo B. Esmeña said that he recommended the closure of the said establishments after A.R. VITUG TRADING, INC. failed to rectify its violations and settle its tax liabilities per surveillance operations. The recommendation was concurred by Revenue Region No. 7, Quezon City Regional Director Jonas DP. Amora.

The closures were made under the Oplan Kandado flagship project of the BIR under the current leadership of Commissioner Kim S. Jacinto-Henares.