Ong Kin King re­futes BIR’s clo­sure or­der

The Freeman - - NEWS -

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.

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