Noel Gonzales, BIR-111 revenue district officer, said Thursday they shut down the operations of Flying V's filling stations under its "Oplan Kandado" program for allegedly understating its sales, in violation of Section 115 of Republic Act (RA) 8424 or the Tax Reform Act of 1997.
He said the affected branches are located along General Santos Drive and Arellano Street in Koronadal City and in Barangay Labangal here.
Four other Flying V branches located in Paranaque, Quezon City and Bicutan, Taguig City were simultaneously closed down for the same violation..
Gonzales said the firm's violations stemmed from a surveillance conducted by the agency in 1997 on the firm's filling stations.
He said their personnel mainly uncovered discrepancies with the readings gathered from fuel dispensers and with the issued official receipts.
"Some transactions were not issued with official receipts and this resulted to the under-declaration of their sales," he said in an interview over Brigada News FM here.
Under Section 115 of RA 8424, Gonzales explained that a business establishment may be closed down by BIR over its "failure to issue receipts or invoices; failure to file a value-added tax return; or understatement of taxable sales or receipts by 30 percent or more of the correct taxable sales."
In the case of Flying V, he said they enforced the closure of the filling stations after the firm failed to properly address the violations and ignored notices from the agency.
"This is a tedious case, three years in the making. So it (Flying V) can't say that this was not done with due process," he said.
Gonzales said the company will have five days to settle its tax deficiency, which reaches over P5 million, so it can reopen its filling stations.
He said the closure of the Flying V branches should serve as a lesson to the company and other establishments that "we are serious with our tax collection efforts."
The official assured that their enforcement operations in the area under "Oplan Kandado" will continue in the coming months.
"We have more than five high-profile cases already lined up for the second semester so they (business owners) should not take us for granted," he added.
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