Korean resto shuttered for alleged tax fraud

Local

AUTHORITIES shut down a Korean restaurant in Cebu City for alleged tax fraud on Tuesday, April 28.

The Bureau of Internal Revenue (BIR) temporarily closed Kaya Barbeque Dining in Barangay Kasambagan for allegedly underdeclaring its sales in violation of Republic Act No. 8424 of the National Internal Revenue Code of 1997.

The agency carried out the closure under its Oplan Kandado Program, posting notices at the establishment while several customers were still dining inside.

Revenue District Head Fidel Calvan said the move followed a surveillance investigation that uncovered major discrepancies in the restaurant’s reported income.

“This action was taken under the Oplan Kandado Program of the Bureau of Internal Revenue. After a thorough surveillance investigation conducted by our team," he said.

Calvan said the establishment underdeclared more than 30 percent of its actual sales, which he classified as fraud.

He added that the BIR issued a 48-hour notice and a five-day VAT Compliance Notice before enforcing the shutdown.

“But despite these notices, the establishment failed to rectify its tax deficiencies. Therefore, to protect the interests of the government, and to ensure fair competition with other businesses," he said.

Calvan said the BIR enforced the temporary closure would serve as a warning to all business establishments.

Authorities served the closure order to the restaurant’s manager in the absence of the owner, according to district spokesperson Atty. Gerica May Rodriguez.

“Unfortunately, the sole proprietor, the owner of the prior restaurant was not there. However, we were able to serve the closue order to the manager,” Rodriguez said.

She said the establishment may reopen once it settles its tax deficiencies.

“So, if the tax payer successfully settled their outstanding priorities, then the temporary closure would be lifted,” she said.

Rodriguez acknowledged that tax filing can be overwhelming, especially for those without an accounting background.

She said that the office remains open to guide taxpayers who may be unsure how to properly file their returns.

She added that officers are available to provide assistance and answer questions.(MyTVCebu)