MANILA – In a sweeping move, the Bureau of Internal Revenue (BIR), under the leadership of Commissioner Romeo D. Lumagui Jr., has shuttered 103 stores belonging to a Chain of Shopping Centers. The closure comes as a consequence of the chain’s underreporting of sales, discovered during a thorough investigation.
It was revealed that this particular Chain of Shopping Centers had been utilizing unregistered Point of Sales (POS) machines. Furthermore, some of these machines were equipped with sales suppression devices, while others were operating with software not approved by the BIR.
Commissioner Lumagui delivered a stern message to all businesses in light of this nationwide closure, emphasizing the importance of registering POS machines and strictly adhering to their proper usage. He condemned the scheme of sales suppression, stating, “This is a reminder to all businessmen to register their POS machines and NOT to tamper with the machines. I have ordered the BIR to investigate all businesses that engage in this kind of tax fraud because it involves under-declaration of sales. We will not hesitate to close down all your stores in the country.”
The BIR, in a test-buy operation, uncovered POS machines reporting only about 25% of their actual sales, significantly reducing taxable sales for the businesses involved.
This Chain of Shopping Centers has been found in violation of Section 115 of the National Internal Revenue Code and Revenue Memorandum Circular No. 3-2009. The crackdown serves as a clear warning to businesses engaging in similar practices that the BIR is committed to combatting tax fraud and ensuring compliance with tax regulations.
