BIR closes resto café

The Bureau of Internal Revenue (BIR) padlocked yesterday Café Demitasse, a homegrown coffee shop and restaurant in F. Torres Street, for its alleged failure to pay the right taxes.

BIR XI regional director lawyer Nuzar Balatero said the owners of Café Demitasse have to pay P2.3 million in taxes to reopen the restaurant. He said the total liabilities of the restaurant, including the penalties, amounted to P3.5 million.

The café was put under surveillance by the bureau since November last year.

Marco Fuentes, accountant and consultant of Café Demitasse, told reporters in an interview that the management of the restaurant will cooperate and fast track the payment of their tax deficiencies to BIR so it would be reopened within the week.

“We will abide to the procedures and we will open this as soon as possible,” Fuentes said.

The closure is part of BIR’s Oplan Kandado program, which targeted establishments that fail to pay the correct taxes.

“The closure order was implemented due to their under declaration, which is a violation to the tax law,” Balatero said. As of the first semester last year, he said the total sales of the restaurant reached P18 million, which means that they have to pay P3.5 million in taxes.

Rodrigo Rivamonte, revenue district officer of BIR 132- East Davao, said the restaurant only paid about P43,000 in taxes as of the first half last year as it thought that they were only subjected for the payment of percentage tax.

Rivamonte said the establishment was already considered as value-added tax (VAT) taxpayer as they earned beyond a million in the first two quarters. He said VAT taxpayers are those establishments that have exceeded P1,919,500 in annual gross sales.

He said Café Demitasse only paid the percentage tax, which was three percent of their gross receipts. The percentage tax payment is for small businesses with gross annual sales and receipts that do not exceed P1,919,500.

“We already issued notices to them and due process was established. Based on our discussions with them, they are willing to pay the tax deficiencies,” Rivamonte said.

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