BIR padlocks 14 restaurant branches in Davao

Subscribe Now May 07, 2015 at 10:09am

Fourteen branches of a restaurant chain based in Davao City were padlocked Thursday over the alleged under-declaration of their taxes.

The Bureau of Internal Revenue's Davao office closed down the branches of Jaltan food chain, to the surprise of employees and even customers, GMA Davao reported Friday.

Personnel from the BIR Davao regional office informed the surprised employees about the closure and asked them to exit the establishment.

"Wala kaming magagawa. Tumaas ang balahibo ko sa nangyari," said employee Lenlen Lesbong.

At the food chain's main outlet on Pichon Street, the BIR team surprised customers who were still eating there.

The team allowed the patrons to finish their meals before closing the branch.

BIR regional director Atty. Glenn Geraldino said this is part of "Oplan Kandado," which covers businesses with an under-declaration of more than 30 percent.

In the food chain's case, he said the under-declaration is more than 70 percent.

"It goes to 70-87 percent. So we closed them because for under-declaration... (W)e are collecting tax for around P4 million for them," he said.

The 14 closed branches included two in Tagum City in Davao del Norte, and 12 in Davao City, including those inside malls.

With the closure, the owner has to pay at least P4 million in taxes to resume operations.

"So they will remain closed until such time that they settle their obligation to the government," Geraldino said.

For her part, Jaltan Enterprises accountant Lilia Torreon said they will comply. "Okay lang, compliance lang kami," she said.


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