The Bureau of Internal Revenue (BIR) District Office in Santa Maria, Bulacan padlocked Dhel’s Food Products, Inc. of Centro Street, Barangay Cruz in Sta. Maria, Bulacan last month allegedly for failure to pay the correct amount of taxes due for 2015. The closure was effected after Dhel’s Food failed to comply with the requirements specified in the 48-Hour Notice and 5-day Value Added Tax (VAT) Compliance Notice through the closure order signed by Deputy Commissioner for Operations Group, Nelson M. Aspe. It was found that Dhel’s underdeclared its sales by P1.35 million, resulting in a deficiency VAT assessment amounting to P267,241.76. Section 115 of the Tax Code, as implemented through Revenue Memorandum Order No. 03-2009, authorizes the BIR to suspend or close the business operations of a taxpayer for a period of not less than five (5) days for failure to: (1) register; (2) issue VAT official receipts or sales invoices; (3) file correct VAT returns; or (4) pay the correct VAT.