The Bureau of Internal Revenue (BIR) has padlocked 33 branches of a subsidiary of courier company LBC for modifying point-of-sale (POS) machines without prior notification.
LBC Express-SMM Inc. was padlocked through closure orders issued after it failed to comply with the 48-hour notice and five-day value-added tax (VAT) compliance notice, which are required of taxpayers when modifying their POS machines.
LBC Express Inc., however, maintained that its subsidiary, which covers operations in southern Metro Manila, already complied with the required notices and payment of the correct taxes.
“This is an isolated incident, in the areas covered by LBC SMM. LBC SMM received a five-day VAT Compliance Notice from the BIR dated August 5, 2015. The VAT Compliance Notice was replied to on August 27, 2015, properly addressing and clarifying the matter, with attached documentary proof that LBC Express Inc. had, in fact, duly and properly made all VAT payments,” LBC Express Inc. President Miguel Camahort said.
The BIR’s post-evaluation and verification of 75 POS machines registered under LBC SMM showed that the said machines were modified without prior notification and approval from the BIR.
“Further, LBC EXPRESS-SMM Inc. was found to have underdeclared its correct taxable sales by P105.04 million, P27.49 million, and P13.16 million for taxable years 2013, 2014, and 2015 [January only], respectively,” the BIR said.
Camahort, however, maintained that LBC SMM had not received any communication from the BIR after LBC SMM had filed its compliance notices, along with proof of payment of the required taxes.
“Thus, the BIR’s September 24, 2015, precipitate closure orders affecting LBC SMM’s branches right before a long weekend came as a complete surprise, especially since the subject VAT payments were, in fact, properly made and proven,” he said in a statement.