BIR hits protection given to erring firms

By JUN RAMIREZ
September 9, 2009, 6:43pm

Field officials of the Bureau of Internal Revenue (BIR) said Wednesday that influential individuals in and out of the government service is undermining the "Oplan Kandado" (OK) project of the agency.

Many revenue Regional Directors and District Officers (RDO) made the complaints as four more business establishments in Metro Manila were padlocked under OK for allegedly under declaring their sales by as much as 70 percent.

They said that it is easy to catch and recommend to BIR management the closure of erring businesses but very difficult to implement them due to strong pressure exerted by "godfathers" of these business operators.

"It is not only local politicians that intervene in the closure but also members of rebel groups like the Abu Sayyaf, " said a Mindanao Regional Development Officer (RDO).

Revenue officials said that in some cases they gave in to the demand either for fear of their lives or lose their jobs.

In a report submitted to Revenue Region No. 5 Director Jimmy Santiago, Valenzuela RDO Art Aquino identified the firms closed as Perfectex Apparel Company and MC Garment Services in Canumay.

Quezon City Regional Director Antonio Montemayor said that Cubao RDO Chito Alberto also closed a trading company in Libis, Quezon City.

This brought to some 110 the number of businesses nationwide padlocked under OK. But almost all of them have been allowed to resume their operations after settling their tax liabilities.

OK is a flagship project of BIR Commissioner Sixto Esquivias IV to compel business taxpayers to declare their correct earnings and pay the appropriate income and value added taxes.