BIR padlocks three Mercury Drug outlets in Olongapo City

OLONGAPO CITY—Three outlets of Mercury Drug, the country’s leading drug retailing store have been closed yesterday by the Bureau of Internal Revenue for alleged violation of Value Added Tax (VAT) law and other tax deficiencies.

Revenue District Officer Alfredo P. Santos led the personnel of the bureau in its campaign dubbed as ‘Oplan Kandado’ which implemented the closure of three Mercury Drug Stores in this city.

“The closure was done after the failure and neglect of delinquent taxpayers to fulfill their obligations despite series of notices,” Santos said.

Santos said that the three franchises of Mercury Drug stores being managed and operated by Benso Champ Corp. located along Gordon Avenue, Benso Winners Corp. situated at Arthur street near the Olongapo City public market and the Ascending Ray Corp. along national highway near Victory Liner bus terminal were all padlocked by the BIR.

The implementation of the closure order issued by Internal Revenue Commissioner Sixto S. Esquivias IV on August 25 was conducted here under the supervision of BIR Deputy Commissioner Babes Rodriguez and assistant Regional Director Pip Madulara.

“This is a nationwide campaign that goes after tax cheaters,” Rodriguez said.

Rodriguez said that the closure order was based on the National Internal Revenue Code and the recommendatory report of the BIR investigating office as reviewed by the Regional Review Board.

Santos disclosed that Benso Champ was liable to pay the government the amount of P500,000 for income incurred in 2007 and P2.7 million for VAT on the same year while Benso Winner incurred tax deficiencies of P1 million for income and P5.7 million for VAT and Ascending Ray with P1.6 million for income and P9.2 million for VAT.

During the closure operations, Mercury Drug Store Manager Andrea Tabong told BIR officials that the company is “dutifully paying correct taxes” through its book keeper.

“We will not ruin the good image of our company only because of non-payment of correct taxes,” Tabong said.

She however agreed to comply with the closure order but vowed to seek reconsideration to higher authorities.

Santos said that another establishment engaged in selling variety items was also closed due same offenses.

He said that Villegas General Merchandise which was placed under surveillance operation was found to be negligent on its tax obligations by ‘under-declaring’ its sales last year by as low as 91 percent of its actual sales.

Santos said that the merchandize store is liable to pay taxes amounting to P1 million for income and another P2 million for VAT.

Madulara meanwhile said that apart from the closure four business establishments, here, simultaneous operations under Oplan Kandado were implemented yesterday in several provinces in Central Luzon.

Madulara said that Oplan Kandado were conducted simultaneously by another BIR teams in Pampanga, Angeles City, Cabanatuan and Nueva Ecija which resulted to eleven more closures of various establishments in those areas such as restaurants, hotels and groceries. (Rey Garcia)