8 drug stores closed by BIR for tax evasion

By September 20, 2009Headlines, News

OPERATION KANDADO CLAIMS ANOTHER

LINGAYEN–The ax has fallen on another tax cheat in Pangasinan.

The Jan Mark Drug Store chain, with eight branches in different parts of the province, was closed last week by the Bureau of Internal Revenue (BIR) under its Operation Kandado.

Two months ago, five popular restaurants in Dagupan, Urdaneta and Binmaley were closed by the BIR for their violations and only permitted to reopen after paying their corresponding tax deficiencies.

Deputy BIR Commissioner Nelson Aspe supervised BIR personnel from the regional office in Calasiao headed by Director Tomas Rosales in implementing Operation Kandado on Jan Mark Drug Store which has two branches in Lingayen, three in Urdaneta City, and one each in Alaminos City, Mangaldan and Tayug.

Jan Mark, owned by a corporation headed by Jan Lee, also has a branch each in Baguio City and Binondo, Manila, but it was not immediately reported whether these were also closed.

CARTOONnews090920Lee was not around when the BIR team swooped down on all his branches in Pangasinan, armed with the closure order. The store employees offered no resistance.

Aspe said only BIR Commissioner Sixto Esquivias IV can lift the closure order upon payment of all the tax obligations by the defaulting corporation.

Jan Mark Corporation was cited for non-filing of Value Added Tax for 2009 and under-declaration of sales by more than 30 percent, which are in violation of Section 115 of the Tax Code of 1997 and Republic Act 8484.

Aspe said the corporation started as a single proprietorship in 1999 and converted into a corporation only in 2007.

Aspe and Rosales expressed hope that the closure of the establishments will serve as a warning to other taxpayers.

“Once we effect the closure the shortest period that the establishment will be closed is five days. However, it will remain close until the taxpayer complies with his obligation to pay the correct revenue tax to the government,” Aspe said.

Operation Kandado, as provided for in the tax code, empowers all regional offices to close establishments in their areas found to be cheating on their taxes. Nationwide, some 120 establishments have been closed under Operation Kandado and generated about P100 million in tax payments.

Rosales said there are about 80 establishments more on their list for closure within the Ilocos Region, including several in Pangasinan. —LM

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