BANAWE, Quezon City – The Bureau of Internal Revenue (BIR) shuttered three (3) food establishments in Banawe, Quezon City last 13 September 2013 for failure to declare their correct taxable sales and pay deficiency value-added taxes (VAT), in violation of the Tax Code.
The three (3) restaurants operate under the trade name King’s Chef and separately registered as RMB Royal Master Bee, Inc., HMB Healthy Master Bee, Inc., and KMB King’s Master Bee, Inc. Marites Ang is the President and Chairman of RMB while Michael Leslie Ang is the President and Chairman of both HMB and KMB.
The King’s Chefs operations were the subjects of separate tax investigations and Tax Compliance Verification Drives pursuant to Mission Order Nos. 00095936 to 38. During the 15-day sales monitoring operations, issuance of official receipts and X-reading of sales and / or inventories generated from the companies’ Special Purpose Machines were documented. Records of investigation showed that the computed annual sales per surveillance operations as compared with the sales per VAT declaration of the subject taxpayers with the BIR disclosed substantial underdeclaration of taxable sales by more than 30%.
Combined deficiency VAT liability of RMB, HMB and KMB was computed at P20.28 million for taxable years 2011, 2012 and 2013 (first 2 quarters).
The closures were effected after the subject taxpayers failed to comply with the requirements specified in the 48-hour Notice and the 5-day VAT Compliance Notice and were implemented through Closure Orders signed by BIR Deputy Commissioner for the Operations Group Nelson M. Aspe.
Special Investigation Division Chief Atty. Elmer F. Carolino said that he recommended the closure of the said establishments after they failed to settle their combined VAT liabilities. The recommendation was concurred by Revenue Region No. 7, Quezon City Regional Director Jonas DP. Amora, Chairperson of the Regional Review Board.
The closures were made pursuant to the Oplan Kandado program of the BIR under the current leadership of Commissioner Kim S. Jacinto-Henares.
