ABS-CBN News

BIR collects P90-M from ‘Oplan Kandado’

Posted at | Updated as of 08/22/09 3:59 AM

MANILA – The country’s main revenue collection agency collected an additional P90 million in penalties since it implemented the “Oplan Kandado” program in January, officials said.

In an interview with reporters, Bureau of Internal Revenue (BIR) Deputy Commissioner Nelson Aspe said this amount was collected from the padlocked 70 business establishments all over the country. He added that about 20 more businesses are to be closed down over the next few weeks.

Aspe said the “Oplan Kandado” program, which basically instills a fear factor to erring taxpayers, as increased value added tax collections.

“The real effect of Oplan Kandado is more on the increase in voluntary compliance especially in the area of VAT payments,” Aspe said.

He attributed the agency’s 25% higher VAT collections of P86.56 billion in the first half of the year from P69.48 billion in the same period last year, to Oplan Kandado.

VAT collections from January to June was P2.34 billion higher than the programmed VAT collection of P84.2 billion.

Famous establishments closed down by the BIR include Ratsky owned by Raiko 10-28 Bar and Restaurant of singer Randy Santiago along Tomas Morato in Quezon City, Murray & D’vine owned by foreigner Murray Hertz of Murray’s Wine-Burger Corp. at the posh Serendra inside the sprawling Bonifacio Global City, and others.

In the first 7 months, however, BIR’s tax take fell 4.1% to P644.1 billion from P671.4 billion in the same period last year.

Finance secretary Margarito Teves had said he will review Oplan Kandado since it might not be effective as perceived.