BIR shuts David's Tea House

Posted at 08/29/14 10:37 AM

MANILA, Philippines - A popular Chinese restaurant in Sta. Cruz, Manila was shuttered by the Bureau of Internal Revenue (BIR) on Friday, after it was found to have failed to pay correct value-added tax (VAT).

BIR- Revenue Region no. 6 Manila padlocked David's Tea House Corp., located at 561-563 Tomas Mapua Street, 555 Tomas Mapua Street, and 563-B Pilarica Street.

David's Tea House is a popular Chinese restaurant chain with 21 branches around the country. The branch in Tomas Mapua Street in Chinatown is its main branch.

The BIR said the company was found to have violated the Tax Code, particularly gross underdeclaration of sales and incorrect payment of VAT.

An investigation done by the Revenue District office showed David's TeaHouse underdeclared its sales by more than 30 percent for taxable year 2013 and first quarter of 2014.

Revenue District Officer Maximo T. Cebrecus, Jr. recommended the closure of David's TeaHouse after it failed to settle its VAT liabilities.

The company also failed to comply with the requirements specified in the 48-hour Notice and 5-day VAT Compliance Notice through a Closure Order signed by BIR Deputy Commissioner for Operations Group Nelson M. Aspe.

"Let it be said that we will shut down tax violators. Unless they mend their ways of circumventing tax laws, many more will be penalized and padlocked. Certainly, this food corporation will not be the last considering our consistent enforcement of tax laws,” Cebrecus said.