Revenue Memorandum Circular No. 3-2009 refers to the Amendment and Consolidation of the Guidelines in the Conduct of Surveillance and Stock-Taking Activities, and the Implementation of the Administrative Sanction of Suspension and Temporary Closure of Business.
In the circular, it is stated that Sec. 115 of the National Internal Revenue Code (NIRC), as amended, refers the Power of the Commissioner to Suspend the Business Operations of a Taxpayer. - The Commissioner or his authorized representative is hereby empowered to suspend the business operation and temporarily close the business establishment of any person for any of the following violations:
A. In the case of a VAT-registered Person. -
1. Failure to issue receipts or invoices;
2. Failure to file a value-added tax return as required under Section 114; or
3. Understatement of taxable sales or receipts by thirty percent (30%) or more of his correct taxable sales or receipts for the taxable quarter.
B. Failure of any Person to Register as Required under Sec. 236. -
The temporary closure of the establishment shall be for the duration of not less than five (5) days shall be lifted only upon compliance with whatever requirements prescribed by the Commissioner in the closure order.
Please refer http://www.bir.gov.ph/images/bir_files/old_files/pdf/43677RMO%203-2009.pdf of the full text of RMC No. 3-2009.
