Popular Greenbelt resto-bar, shut down by BIR due to tax violations

By , on June 13, 2014


MANILA, Philippines – The Bureau of Internal Revenue (BIR) has shut down a popular restaurant-bar in Greenbelt 3, Makati City due to supposed tax violations.

The BIR said that it padlocked Dillingers 1903 Steak & Brew in Greenbelt 3 Ayala Center due to “acts and omissions constituting violations of the National Internal Revenue Code of 1997.” The establishment is operated by Timeless Bar and Restaurant Concepts.

Dillingers is the first restaurant to be shut down in the Greenbelt area. The BIR pointed out that the upscale bar is “reportedly owned by scions of well-known politicians in the country,” but deferred from naming names.

The agency added that Timeless Bar and Restaurant Concepts was the subject of a “mission order” issued to the Special Investigation Division of Revenue Region No. 8, Makati City to assess if it complied with the Tax Code requirements.

Surveillance and monitoring operations, however, allegedly turned up findings that the company failed to report its correct taxable sales and receipts to the BIR.

An initial assessment of Timeless Bar’s tax liability indicated that the company had had under declared correct taxable sales and receipts by 213.55, the BIR said.

The company had been given a 48-hour notice to address its liabilities, but failed to rectifications. Furthermore, the company was issued a 5-day Value Added Tax compliance notice, which it once more treated with non-compliance.

Both notices required Timeless Bar to correct its previously-filed VAT returns in order to reflect the correct taxable sales and receipts. The establishment was likewise ordered to indicate VAT output tax in its receipts, register special purpose machines, and comply with bookkeeping requirements.

The tax bureau said that “failure (to do so) prompted the BIR to shut down the bar and restaurant,”

For their part, Dillinger’s management said it is working with the BIR to resolve the matter.

“We are aware of the situation and have been closely working with the BIR to resolve the issue so as not to affect our operations and continuously serve our customers. We hope for your kind understanding during this time,” it said in a statement.