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Cebu City restaurant shut down over alleged tax violations

Bureau of Internal Revenue (BIR) agents shut down a Korean barbecue restaurant over alleged tax violations. A branch of Kaya Barbeque Dining in Barangay Kasambagan, Cebu City was closed after Revenue District Head Fidel Calvan said investigators found the business allegedly underdeclared sales by more than 30 percent, a violation of the National Internal Revenue Code of 1997. Revenue District Office 81-Cebu City North enforced the closure under the Oplan Kandado program following surveillance operations. Calvan said the bureau discovered the discrepancy through surveillance that compared declared revenues with actual sales. Officials from the BIR Central Visayas, including Assistant RDO Nicanor San Juan and Regional Director Douglas Rufino, joined the enforcement team.

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Transcript
00:14I'm going to close you over there for your establishment of a very small part of the department.
00:32Oh, unregistered visit man to ma'am, Ma'am Henra, ikaw ma'am nakat pirma dini?
01:08...located at Bonifacio District. This actually was taken under the Oplan Candado program of the Bureau of Internal Revenue.
01:21After the total surveillance investigation conducted by our team, with the team of Attorney Kahir,
01:32we discovered serious violations of the National Internal Revenue Code of 1997 as amended.
01:40Specifically, there was an under-declaration of sales in the amount of more than 30%. So it is considered fraud.
01:57Procedural job process was provided to the taxpayer. A 48-hour notice was served to them and then a 5
02:04-day bank notice.
02:07But despite these notices, the establishment failed to rectify its tax deficiencies.
02:14Therefore, to protect the interests of the government and to ensure fair competition with other businesses,
02:21the PIR enforced the temporary closure of Kaya Restaurant. And let this serve as a warning to all business establishments.
02:32The PIR, under the leadership of Commissioner Charlito Martin Mendoza and our Regional Director Serra Douglas Rufino,
02:41is serious about its tax compliance drives.
02:46Oplan Candado will continue to operate against any establishments.
02:52Especially, our DO81 has a very big collection goal for 2026. It's almost 23 billion.
03:03For this month alone, our goal is about 3 billion. So if we will not do this, I don't know
03:10where we will get this amount.
03:15Thank you, and if you have any questions, we have...
03:18Operation started with a mission order that is aimed to verify the accuracy of their sales deterioration and their tax
03:30return.
03:30So, well, upon conducting the main order, we have discovered that indeed there has been an underliteration.
03:37And that underliteration is more than 30% in sales.
03:42So, by that, we proceeded to giving them a 48-hour notice to its date.
03:50So, just a brief background. In the 48-hour notice, the tax violations, including the combinations for the decisions,
03:58as already stated, as already stated, and all of this, and we give them 48 hours to explain or justify
04:08the set underliteration.
04:11But for Kaya Restaurant, they have replied within 48 hours, and we appreciate that.
04:19However, their reply did not really justify or it did not merit the board found the reply declarator,
04:32which means they did not dwell on the underliteration.
04:35So, after 48-hour notice, we proceeded with a 5-day BCI for the back compliance notice.
04:44So, that notice gives them additional 5 days to suck on their agency.
04:49However, after 5 days, and even giving them a long time, they failed to comply with their...
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