BIR flags PHP 742.1M tax exposure

By Francis Allan L. Angelo

The Bureau of Internal Revenue said its Nationwide Oplan Kandado 2026 operation on June 30 covered 419 cases involving PHP 742.1 million in potential tax exposure.

The amount was based on corresponding 5-day VAT Compliance Notices issued to taxpayers, according to the BIR.

The nationwide operation led to the implementation of 132 Closure Orders by the end of the June 30 enforcement activities.

The BIR said many other taxpayers complied before a Closure Order was issued by registering their businesses, filing the required tax returns, and settling their tax obligations.

Operations were monitored through the National Command Center in Revenue Region No. 7A in Quezon City.

Revenue Regions reported the results of the morning operations and ongoing enforcement activities from across the country through the command center.

The BIR said the campaign was carried out under the guidance of “Assistance First to Comply. Enforcement Only When Necessary.”

Oplan Kandado is the BIR’s enforcement program against businesses that fail to comply with tax laws, including registration, invoicing, filing, and payment requirements.

Commissioner Charlito Martin R. Mendoza said the bureau resorts to Closure Orders only after taxpayers have been assisted, informed of their obligations, and given reasonable opportunity to comply.

“Every closure carried out today should have come only after the Bureau had extended assistance, explained the taxpayer’s obligations, and provided every reasonable opportunity to comply. Only after those efforts have failed does enforcement become necessary,” Commissioner Mendoza said.

“Noong una pa lang, malinaw na ang bilin ni Secretary Go sa atin: padaliin natin ang tax compliance para sa ating mga taxpayers. Gawing mas maayos ang serbisyo ng gobyerno. Iyan ang malinaw na direksyon at utos ni Pangulong Ferdinand R. Marcos Jr., at iyan ang ginagawa natin sa ilalim ng BIR DARES,” Commissioner Mendoza said.

Finance Secretary Frederick D. Go has pushed for reforms aimed at improving integrity, transparency, and fairness in tax administration, including the Single-Instance Audit Framework under Revenue Memorandum Order No. 1-2026, which generally limits taxpayers to one Letter of Authority per taxable year.

Mendoza said the BIR had already begun implementing its compliance-first approach through its C.H.A.T. Drive, or Counsel, Help, and Assist Taxpayers, last February.

Under the drive, Revenue Regions and Revenue District Offices visited business establishments to assist taxpayers and encourage voluntary compliance before enforcement became necessary.

“Yun talaga ang dapat na mauna. At kapag hindi na talaga tumalab ang assistance, doon pumapasok ang Oplan Kandado. When taxpayers are willing to comply, we assist them. But when there is clear and deliberate refusal, we enforce the law. Firm when necessary. Fair at all times,” Commissioner Mendoza said.

Before any establishment is considered for temporary closure, the BIR first conducts surveillance and validation.

The bureau also issues the notices required under existing laws and regulations before implementing a Closure Order.

Throughout the process, taxpayers are given sufficient opportunity to rectify deficiencies, register their businesses, issue proper invoices or receipts, file the required tax returns, and settle their tax obligations.

Mendoza said Oplan Kandado now extends to online businesses, which are also expected to comply with registration, invoicing, filing, and payment requirements.

He said appropriate enforcement measures, including online takedown mechanisms where authorized by law, are part of the BIR’s efforts to ensure compliance in physical and digital marketplaces.

The BIR said online businesses are now covered by the campaign, with tax authorities requiring them to register, issue invoices or receipts, file returns, and pay the correct taxes.

Mendoza added that Oplan Kandado is implemented year-round by Revenue Regions and Revenue District Offices nationwide.

“The numbers are important. But equally important is how those results were achieved—fairly, firmly, and professionally,” Commissioner Mendoza said.

The BIR said Oplan Kandado promotes voluntary compliance and increases revenue collections through the closure of non-compliant business establishments when assistance and notices fail to secure compliance.