Bilyonaryo Lucio Co’s S&R Membership warehouse club is in hot water after untaxed sweetened beverages were found at its Bonifacio Global City branch.
The Bureau of Internal Revenue (BIR), under the leadership of its chief, Romeo D. Lumagui Jr., recently executed an enforcement operation that resulted in the seizure of S&R Lemon Tea and S&R Raspberry Tea products at the BGC store.
These particular items were manufactured by Vermirich Foods Corp., a company that has blatantly neglected its obligation to file tax returns and remit taxes since 2018, thereby violating several provisions outlined in the National Internal Revenue Code (NIRC).
The BIR contends that Vermirich’s cumulative deficiency in excise taxes, inclusive of interest, surcharges, fines, and the 12% value-added tax on sweetened beverages, stands at P800 million.
As early as July 6, 2021, the BIR had urged S&R to adhere to regulatory protocols. Nevertheless, as the distributor of these untaxed products, S&R failed to exercise due diligence in confirming whether Vermirich had fulfilled its tax obligations pertaining to the sweetened beverages.
Consequently, this renders the retailer, S&R, culpable for infractions under Sec. 4 of Revenue Regulations No. 20-2018, as well as Sections 130, 150-B, and 263 of the NIRC.
“Given the substantial amounts of deficiency excise taxes involved, the Bureau decided to conduct these enforcement operations to emphasize the gravity of Vermirich and S&R’s offenses. The objective is to highlight the impact of tax evasion and illicit trade on the Bureau’s revenue collections, and on the national economy,” the BIR said.