The Bureau of Internal Revenue – Revenue Region No. 6, Manila today shuttered a popular food establishment in Sta.Cruz, Manila for violating the provisions of the National Internal Revenue Code of 1997, as amended (Tax Code), particularly on Value Added Tax (VAT).

DAVID’s TEAHOUSE FOOD CORPORATION, a food establishment, franchisor and producer of siomai / siopao located at 561-563 Tomas Mapua Street, 555 Tomas Mapua Street, and 563-B Pilarica Street, all in Sta. Cruz, Manila, was padlocked for gross underdeclaration of sales and incorrect payment of Value Added Tax (VAT).

Surveillance activities and verification of point-of-sales machines conducted by investigators and revenue officers of Revenue District Office No. 31, Sta. Cruz, Manila pursuant to Mission Order Nos. 00077054, 00077055, and 00077055, all dated March 26, 2014, disclosed that the said establishment underdeclared its sales by more than thirty percent (30%) for taxable year 2013 and first quarter of 2014.

The closure was effected after the subject taxpayer failed to comply with the requirements specified in the 48-hour Notice and 5-day VAT Compliance Notice through a Closure Order signed by BIR Deputy Commissioner for Operations Group Nelson M. Aspe.

Section 115 of the Tax Code, as implemented through Revenue Memorandum Order No. 03-09, 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.

“Let it be said that we will shut down tax violators. Unless they mend their ways of circumventing tax laws, many more will be penalized and padlocked. Certainly, this food corporation will not be the last considering our consistent enforcement of tax laws,” said Revenue District Officer Maximo T. Cebrecus, Jr. of RDO 31, Sta. Cruz, Manila who recommended the closure of DAVID’s TEAHOUSE FOOD CORPORATION after it failed to settle its VAT liabilities. The recommendation was concurred by the VAT Regional Review Board of Revenue Region No.6, Manila chaired by Regional Director ARACELI L. FRANCISCO.

The closure was made pursuant to the Oplan Kandado program of the BIR under the current leadership of Commissioner Kim S. Jacinto-Henares.