Tax man to hunt those errant shop owners

By Mortz C. Ortigoza

After I posted the mall’s brouhaha that became “viral” (a Facebook’s parlance means “quickly becomes very popular”) that major radio commentators feasted, a lawyer - friend reported to me how one of the stalls in a new business establishment in Dagupan City violated the tax law of the country by not issuing an official receipt (O.R) of the Bureau of Internal Revenue.

“Mahaba ang pila namin sa sikat nila na “drink” ng mapansin ko na binabawi ng attendant iyong recibo na binigay niya sa harap ko na customer. Noong ako na ang nagbayad sinabi ko na kailangan ko ng O.R ng BIR. Binigyan ako pero binabawi rin niya,” the lawyer, who declared on condition of anonymity, told me.

When he introduced himself as a lawyer and lectured her that the store violated the tax law of the land, the attendant, who felt those lectures were “Greek”, told him they don’t have the O.R.

“Imagine they have been operating for more than a week without issuing receipts from the BIR. They should have shut down their shop.” He told me.
He called his friends at the BIR and reported the matter.

I know another store there that did not have an O.R but did not open to business afraid that it could commit infraction, according to its staff.

“We are still waiting for our official receipt,” he told me.

Authorities shut down a big time Philippine Offshore Gaming Operator (POGO) provider in Quezon City, complying with the Finance chief’s ordered crackdown on gambling sites that refuse to pay taxes. Extreme right is Bureau of Internal Revenue Deputy Commissioner Arnel Guballa. (FILE PHOTO)

When I narrated the incident last Tuesday with BIR Revenue District Office No. 4 Chief Ernesto I. Mangabat, who oversees two cities and 13 towns in central Pangasinan, and Taxpayer Assistance Unit Lee Caday, the point man of BIR Region-1 Director Thelma S. Milabao who was out –of-town, they were alarmed.

Caday said when the regional director arrived, she will surely ask the RDO chief for tax mapping on the errant owner or owners of stalls of the establishment.

When I asked him about my experienced as a store owner in early 2000 and newspaper manager where the BIR gave me one pad 100 pages (that included the duplicates) temporary O.R. that I could issue to my clients, Caday said that the tax agency could issue more than one pad but they could be limited if the shop is being crowded by the customers because of its product that sells like “hot cake”.

TAX MAN - Author reported to Revenue District Office No. 4 Chief Ernesto I. Mangabat, the big boss of the BIR in Central Pangasinan, business establishments that did not issue official receipts (O.R) to their customers. RDO-No. 4 covers the cities of Dagupan and San Carlos and 13 towns.

He speculated that in case the staff ran out of temporary O.R thus she was getting it back to show to a customer who demanded for an O.R.

Revenue District Office No. 4 Chief Mangabat told to me he would be requesting Director Milabao to issue a mission order so his staff can tax map the alleged violator and other misbehaving stall owners.

He had a message to O.R offenders:

“Hindi lang sa kanila, lahat ng ating business establishments follow the rules and regulation with regards to the BIR. Kasi mahirap na hindi kayo mag follow. Alam natin na nandiyan ang ating enforcement activities plus penalties for not issuing the receipts of not registering iyong business malaking bagay iyan”

If the errant shop failed to register, Mangabat said the taxpayers will refer it to the legal department to fila a criminal case’s Run After Tax Evaders (RATE).

RATE by the way was a brainchild of my friend Deputy Commissioner Arnel Guballa, the primus inter pares of all the Deputy Commissioners of the BIR, when he was the boss of the National Investigation Division of the tax agency. But being in this prestigious position then had a price to pay for Guballa susmariosep!: It cost the life of his wife Evelyn in 2006 to assassin bullets by those he offended on his strict implementation of this tough BIR policy.
A pastor who, who was in that prayer meeting, attempted to shield the victim from the gunman who wielded an assault rifle was also killed in the incident.

I digressed on my misbehaving shop owners' column. 
Mangabat said the penalties and surcharges for non-issuance of receipt and RATE are hefty as provided by the National Internal Revenue Code.

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(You can read my selected columns at http://mortzortigoza.blogspot.com and articles at Pangasinan News Aro. You can send comments too at totomortz@yahoo.com)