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Two luxury hotels in Boracay Island were shut down by the Bureau of Internal Revenue (BIR) for allegedly committing tax violations.
Canyon De Boracay Inc. and Real Maris Resort & Hotel Inc were padlocked on Tuesday for violating the provisions of the National Internal Revenue Code of 1997, as amended (Tax Code), including failure to declare correct taxable sales.
BIR said Canyon De Boracay hotel failed to file its Income Tax and Value Added Tax (VAT) returns for taxable year 2012, thus, failed to declare its taxable sales in violation of Section 115 of the Tax Code and Section V.B.3.1.3 of Revenue Memorandum Order (RMO) No. 3-2009.
Real Maris Resort and Hotel, on the other hand, was discovered to have underdeclared its sales by more than 30 percent for taxable years 2012 and 2013.
BIR said the hotel also failed to file and pay its quarterly VAT returns in 2013 and for the first and second quarters of taxable year 2014, in violation of Section 7 of RMO No. 3-2009.
The temporary suspension of the two hotels was implemented pursuant to Sec. 115 of the Tax Code as implemented through RMO 3-2009 (Oplan Kandado Program) and was enforced through Closure Orders signed by DCIR Nelson M. Aspe dated June 2, 2015.
The BIR is authorized to suspend or close the business operations of a taxpayer for a period of not less than five days for failure to register; issue VAT official receipts or sales invoices; file correct VAT returns; or pay the correct VAT.
Photo: ABS-CBNnews.com
This article has been re-published with permission from ABS-CBNnews.com.
