BIR chops Elarz ‘lechon’ for tax evasion
A popular roasted pig restaurant along Speaker Perez Street in Quezon City was shuttered by the Bureau of Internal Revenue (BIR) for tax evasion amounting to P3 million, the Manila Bulletin reported.
According to the report quoting Quezon City Revenue Regional Director Marina De Guzman, the Elarz Eatery will remain closed until its owners settled the said amount, which includes surcharges and interests.
Based on record, Elarz only paid 3 percent tax from P16 million it made in 2016, instead of the 12 percent value-added tax.
De Guzman said that they have already informed Elarz about its tax debts but refused to settle, citing the “insufficiency” of funds. But the BIR said that the restaurant is making P1.9 million annually, which subjects them to VAT coverage.
Guzman, however, clarified that other namesake “lechon” restaurants will not be affected by the closure order, noting that they were owned to other entities and corporations.