Why Wee Nam Kee restaurants were shut by BIR


Posted at Feb 05 2015 06:53 PM | Updated as of Feb 06 2015 06:24 PM

MANILA, Philippines - A popular chain of Hainanese chicken rice restaurants was recently shuttered by the Bureau of Internal Revenue for allegedly understating its sales.

The BIR Revenue District Office No. 50 in Makati said it padlocked Wee Nam Kee Restaurant and 7 of its branches in Metro Manila during simultaneous operations last January 26.

WLA Food Concepts Inc.'s (Wee Nam Kee restaurant and Wee Nam Kee Hainanese Chicken Rice) main office is located at Ayala Triangle Gardens, Makati Avenue.

However, as of Thursday (February 5), Wee Nam Kee Philippines said it has re-opened its restaurants. 

The company did not make any reference to the BIR case.

On January 26, it only posted a message on Facebook that read: "We sincerely apologize for our temporary closure. Rest assured we will be back soon to serve you our authentic Singaporean specialties."

The BIR said it had discovered that WLA Concepts has been understating its sales by more than 30 percent of its income tax in 2013 and 2014.

Last October 20, 2014, BIR regional director Jonas D.P. Amora had issued mission orders for the reading of the restaurants' Point-of-Sale (POS) machines. "Results of the POS reading revealed that subject taxpayer understated its sales by more than 30% of its correct taxable income for taxable years 2013 and 2014," it said.

The BIR had ordered the closure of the restaurant chain after it failed to comply with the requirements specified in the 48-hour Notice and the 5-day VAT Compliance Notice through the BIR's closure order.

Under the Tax Code, the BIR can suspend or close the business operations of a taxpayer for a period of not less than 5 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.