The Bureau of Internal Revenue (BIR) has temporarily closed four branches of a Chinese restaurant for alleged tax violations.
Zhenbao, the restaurant operated by Shanzhen Haiwei Food Corp. was padlocked by BIR.
The shuttered branches were located in Sen. Gil Puyat Ave., Makati City; Ayala Malls Manila Bay; and two more in BGC.
“Results of the Regional Investigation Division’s surveillance conducted in February 2023 showed that the said establishment failed to register one of its branches, failed to issue registered receipts/invoices and understated its sales by more than thirty percent 30 percent in clear violation of Section 115 of the NIRC of 1997, as amended,” the BIR said.
Section 115(b) authorizes the BIR to suspend or close the business operations of a taxpayer for a period of not less than five days for failure to: register; issue VAT official receipts or sales invoices; file VAT returns; or understatement of taxable sales/receipts by thirty percent or more of correct taxable sales or receipts for the taxable quarter.
The BIR said a 48-hour notice was issued to explain the violations, and another five-day VAT compliance notice to rectify the tax payment, but Zhenbao failed to comply with the said notices.