BIR closes 103 stores for POS machine tampering and non-registration in nationwide closure operation

The Bureau of Internal Revenue, headed by Commissioner Romeo D. Lumagui Jr., has closed down 103 stores of a Chain of Shopping Centers last October 13, 2023 due to its underreporting of sales.

Upon investigation, this Chain of Shopping Centers was found to be using unregistered Point of Sales (POS) machine, some of which with sales suppression devices while others were using a software different from that approved by the BIR.

“This nationwide closure of a chain of shopping centers is a reminder to all businessmen to register its POS machines and NOT to tamper with the machines. This is a scheme for sales suppression. I have ordered the BIR to investigate all businesses that engage in this kind of tax fraud because it involves under-declaration of sales. We will not hesitate to close down all your stores in the country,” Lumagui said.

In a test-buy operation, the BIR chanced upon machines that were only reporting about 25% of its sales, thereby drastically reducing its taxable sales.

This Chain of Shopping Centers was found to be in violation of Section 115 of the National Internal Revenue Code and Revenue Memorandum Circular No. 3-2009.

The chain’s stores in the following locations were closed:

• Manila
• Quezon City
• Laguna
• Batangas
• Bulacan
• Rizal
• Tarlac
• Nueva Ecija
• Bataan
• Cavite
• Pangasinan
• South Cotabato
• Iloilo
• Leyte
• Lanao Del Norte

The chain sells appliances, clothing, household wares, furniture, and groceries.