THE BUREAU of Internal Revenue (BIR) on Monday said it has shuttered the operations of the popular Mann Hann restaurant chain and Hennan Resort in Panglao, Bohol for underdeclaring sales.
In a statement, the BIR said it has “temporarily suspended/closed” 18 branches of Mann Hann which are operated by three companies Lim Keng Hua Foods Corp., Shin Mann-Hann Corp., and MH Capital Foods Corp. for underdeclaring 2017 sales.
Lim Keng Hua Foods underdeclared last year’s sales by 120% or P98 million, while Shin Mann-Hann and MH Capital underdeclared sales by 244% or P138.73 million and 148% or P92.9 million, respectively.
The BIR said the three companies failed to comply with the requirements set out by the BIR in its 48-hour notice and five-day VAT compliance notice.
Meanwhile, the BIR said it shuttered Bohol Hennan Resort, Inc. last Nov. 27 for violations of the tax code, including underdeclaration of its sales.
The BIR found that Bohol Hennan underdeclared its sales by 42% or P324.04 million in 2016, 34% or P312.17 million in 2017, and by 38% or P199.59 million in first semester of 2018.
Under Section 115 of the Tax Code, the BIR can suspend or close the business operations of a taxpayer for a period of not less than five days for failure to: (1) register; (2) issue VAT official receipts or sales invoices; (3) file correct VAT returns; or (4) pay the correct VAT.
BusinessWorld tried to reach the companies for comment but to no avail as of press time. — V.M.Villegas
