The Bureau of Internal Revenue (BIR) padlocked MINI STOP last 03 October 2012 for acts constituting violations of the National Internal Revenue Code of 1997, as amended (Tax Code).
Mini Stop was shuttered for gross underdeclaration of taxable sales as a result of a reconciliation done by the BIR of the store’s sales declaration in its Value Added Tax (VAT) returns with the sales generated by the Point-of-Sales (POS) machines used by the store in its day-to-day transactions.
MINI STOP is operated by RYO3 INC. with business address at Unit 102 Centerpoint Condominium, Garnet Road, cor. J. Vargas Avenue, Ortigas Center, Pasig City. Mini Stop is a ubiquitous 24/7 convenience store in Metro Manila.
An evaluation of the POS machines used by Mini Stop in its business operations made by revenue officers of Revenue District Office N0. 43A- East Pasig generated total sales for the periods in question which were not correctly declared with the BIR. A comparison of the POS machine generated figures with the VAT sales declarations of the store with the BIR for 2010 and for the first semester of 2011 showed a discrepancy of 188% and 183%, respectively.
The suspension of the business operations or closure of the business establishment was implemented pursuant to Section 115 of the Tax Code as implemented by Revenue Memorandum Order No. 3-2009 dated January 15, 2009.
Aside from the said administrative sanctions, Mini Stop was also cited for attempt to evade or defeat tax, failure to pay correct income tax, failure to file VAT returns and pay correct VAT, perjury, failure to file corporate tax return and failure to keep books of accounts.
The closure of Mini Stop stemmed from the results of the inspection/verification conducted by Revenue Officers of Revenue District Office No. 43A-East Pasig City pursuant to Mission Order No. MSO 00084787 dated September 01, 2011.
A 48-Hour Notice was issued by Revenue District Office No. 43A-East Pasig City informing the subject taxpayer of the findings of its investigating officers and to make the necessary rectifications which it failed to make. A Five (5)-Day VAT Compliance Notice was issued thereafter and again, the subject taxpayer failed to comply with the requirements of the said VAT notice.
The failure of the subject corporation to comply with the above notices led to the issuance of a Closure Order signed by BIR Operations Group Deputy Commissioner Nelson M. Aspe on September 19, 2012.
The closure of MINI STOP was led by Revenue District Officer Florante R. Aninag and Revenue Region No. 7, Quezon City Regional Director Jonas DP. Amora, together with Group Supervisor Alfred Santos and his Revenue Officers who developed the case against Mini Stop.
To date, the subject taxpayer paid BIR an undisclosed amount to cover for its deficiency tax obligations. The case of MINI STOP is part of the Oplan Kandado program of the BIR under the leadership of Commissioner Kim S. Jacinto-Henares.
