BIR padlocks Biñan motorcycle shop

By Jun Ramirez
BINAN CITY, Laguna – The Bureau of Internal Revenue (BIR) has padlocked a motorcycle shop here for alleged failure to register as value-added taxpayer (VAT) and for not paying the correct taxes.

Alas Cortez Enterprises (ACE) was shut following tax mapping or street-by-street inspection.

Laguna Revenue Regional Director Jethro Sabariaga said the store was found to have exceeded the old VAT threshold of P1.9 million when it declared gross sales of more than P8.8 million for 2016.

He said that despite being a VAT registrable taxpayer, ACE did not register as such.

Consequently, it failed to file VAT returns.

It claimed its deceased bookkeeper ran away with the tax payments, and concocted the sales declaration.

Nonetheless, ACE still did not update its registration status from non-VAT   to VAT despite several notices.

Sabariaga said the operations of the firm will remain suspended until all liabilities are settled.

Under Section 115 of the Tax Code, a business is liable to be closed if it fails to register as VAT, issues VAT receipt, files correct VAT returns and taxes.(Jun Ramirez)