Manila, Philippines — The Bureau of Internal Revenue (BIR) reported that it has issued 132 Closure Orders against various business establishments across the country.
The move is part of the BIR’s ongoing “Oplan Kandado” program, which aims to crack down on businesses that continue to operate without proper registration and fail to pay the correct taxes to the government.
According to the BIR, of the 419 cases it identified involving a total of ₱742.1 million in potential tax liabilities, only 132 were issued Closure Orders after failing to comply with the 5-Day VAT Compliance Notices served prior to the issuance of the orders.
The BIR said that many of the affected taxpayers instead chose to register their businesses, file the required tax returns, and settle their tax obligations after receiving the compliance notices, allowing them to avoid the issuance of a Closure Order.
The agency emphasized that Closure Orders are not imposed arbitrarily on business owners.
It explained that the process involves proper dialogue and communication with taxpayers.
The BIR also conducts surveillance and validation, while giving taxpayers sufficient time and opportunity to comply with tax laws and regulations.
A Closure Order is issued only if they fail to comply despite these opportunities.
Meanwhile, the agency clarified that its policy also covers online businesses nationwide, urging them to register their businesses, issue the required invoices, file the necessary tax returns, and pay the appropriate taxes.
Online businesses that fail to comply may likewise be subjected to an online closure.
The nationwide implementation of Oplan Kandado is anchored on the principle of “Assistance First to Comply, Enforcement Only When Necessary.”