BIR shuts popular Greenbelt bar over tax violations
MANILA, Philippines (UPDATE) - A popular restaurant-bar in Greenbelt 3, Makati City has been shut by the Bureau of Internal Revenue (BIR) over alleged tax violations.
In a statement, the BIR said it padlocked Timeless Bar and Restaurant Concepts, which operates Dillingers 1903 Steak & Brew in Greenbelt 3 Ayala Center, due to "acts and omissions constituting violations of the National Internal Revenue Code of 1997."
The BIR said the Dillingers was the first restaurant it shuttered in the Greenbelt area. It noted that the upscale bar is "reportedly owned by scions of well-known politicians in the country," but did not give names.
The BIR said Timeless Bar and Restaurant Concepts was the subject of a "mission order" issued to the Special Investigation Division of Revenue Region No. 8, Makati City to determine if it complied with the Tax Code requirements.
During its surveillance and monitoring operations, it was discovered the company did not report its correct taxable sales and receipts to the BIR.
The BIR said an initial assessment of Timeless Bar's tax liability showed it had underdeclared correct taxable sales and receipts by 213.55 percent.
The BIR said it had issued a 48-hour notice to Timeless Bar to address its liabilities, but it did not make the necessary rectifications. A 5-day Value Added Tax compliance notice was issued, but once again the company did not comply.
Both notices had required Timeless Bar to amend its previously-filed VAT returns to reflect the correct taxable sales and receipts, as well as indicate VAT output tax in its receipts, register special purpose machines, and comply with bookkeeping requirements.
"Said failure prompted the BIR to shut down the bar and restaurant," the bureau said.
In a statement, Dillinger's management said it is working with the BIR to resolve the matter.
"We are aware of the situation and have been closely working with the BIR to resolve the issue so as not to affect our operations and continuously serve our customers. We hope for your kind understanding during this time," it said.