Ong Kin King refutes BIR’s closure order
The owner of Ong Kin King & Co. Inc. is seeking the proper computation of their tax deficiencies by qualified Bureau of Internal Revenue (BIR) authorities as they are willing to pay based on valid tax assessment.
Ong Kin King & Co. Inc. has questioned the legality and the signatory of the closure orders issued by the BIR to at least eight of its establishments in Cebu and Mandaue City last Thursday.
The company’s tax counsel, Estrella Martinez, said the orders of BIR Revenue Region No. 13 Director Eduardo Pagulayan were “illegally and erroneously issued.”
This prompted the owner to bring the matter to Department of Finance Secretary Carlos Dominguez, the BIR Commissioners, other BIR Regional Directors and the Office of the Ombudsman.
Pagulayan signed the closure orders of the Ong Kin King businesses that include the warehouses at Pier 2, Arellano Avenue Extension in Pier 5, Philpos Atlas fronting CTU, LapuLapu corner Magallanes Streets; Harisson Park Beer, Grill and Sizzling Bar in Osmeña Boulevard and in Apas, Cebu City; and a warehouse in Tipolo, and a restaurant in Mandaue City.
Pagulayan cited the establishments violating Section 115 of the National Internal Revenue Code of 1997 which provides the power of the Commissioner to suspend the business operations of a taxpayer.
Sections 115 states that the Commissioner or his authorized representative is empowered to suspend the business operations and temporarily close the business establishment of any person for any of the following violations which include failure to issue receipts or invoices; failure to file a value-added tax return as required under Section 114; or understatement of taxable sales or receipts by 30or more of his correct taxable sales or receipts for the taxable quarter and failure of any person to register as required under Section 236.
Martinez argued that under Revenue Memorandum Order No. 3-2009 as amended by RMO No. 36-2009, Deputy Commissioner for Operations Arnel Guballa is the legal signatory of the closure orders.
She also questioned the validity of the Letter of Authority signed by Pagulayan, saying he is just an officer-in-charge of the BIR Regional Office.
Martinez said that Pagulayan’s signing of the closure order is a flagrant violation of Section 10 of the NIRC.
“It is respectfully requested that the aforementioned closure orders and any subsequent closure order should be withdrawn and cancelled because they are suffering from many legal and jurisprudential infirmities,” said Martinez in a position paper dated September 13, 2018 addressed to Pagulayan.