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BIR closes firm in Liloan for P2B deficiency

THE Bureau of Internal Revenue (BIR) 13 has padlocked the Cebu Grand Dragon Corporation in Liloan, Cebu last March 19, 2021 and was assessed of a P2 billion tax deficiency.

Atty. Nico Lim of the BIR 13 Legal Division told Cebu Business Week and DYRC radio that Cebu Grand Dragon Corporation has been importing construction materials directly from China and is not paying the correct taxes for the Philippine government.

Lim said big companies like Vic Enterprises are getting their stocks from Cebu Grand Dragon which means the company is bigger than their dealers like Vic Enterprises.

Importation records at the Bureau of Customs were given to the BIR which is now conducting investigation of its operation and how much taxes it paid.

A source said that these big businessmen always sought the services of a tax lawyer whose wife is working with BIR.

Cebu Grand Dragon which is located in Barangay Canaan, Liloan and has been operating ten-wheeler trucks to transport its products from China to their bigtime customers.

Canaan resident Alexander Mendiola told Cebu Business Week that Liloan authorities would drive them away when their vehicles everytime they park in front of Cebu Grand Dragon for obstructing the passage of its delivery trucks.

Atty. Nico Lim of BIR 13 regional investigation division said that Cebu Grand Dragon has committed tax evasion for not issuing official receipts under the 254,255 and 266 of the Tax Code of the Philippines.

Lim said that it has big operations but with low sales declaration by not issuing official receipts to customers.

The BIR also found out that Cebu Grand Dragon is actually owned by Chinese nationals and the Filipino stockholders appeared to be dummies, in violation of Philippine laws.

Lim said that while they are conducting further verification on the company’s violations, it was initially found out to be a tax evader.

The company is selling fabricated metals and is really getting materials from China but cannot present importation documents from the Bureau of Customs (BOC) as proof. The presumption is that the company is onto smuggling.

“We try to communicate with BOC officials and customs brokers to submit legal importation documents to determine the legality of the entry of the products to the Philippines,” Lim said.

One of the stockholders who is the president is a big businessman inIloilo City.

Lim said that while their products are low priced, these are found to be substandard. Even the employees know that while the products are of low price, the quality is also low, which is also a violation of the laws implemented by the Department of Trade and Industry (DTI).

Lim said they also heard that Cebu Grand Dragon has also violated the laws, rules and regulations of the Securities and Exchange Commission (SEC).

Despite the glaring violations of Cebu Grand Dragon, its officials have no respect to Philippine laws and the authorities maybe because they have “padrinos”. ELIAS O. BAQUERO