Milky Way, Tsukiji caught in tax campaign

TSUKIJI and three sister restaurants on Arnaiz Avenue in Makati were temporarily shut down after revenue officials cited them for tax violations.

The Bureau of Internal Revenue served closure notices on Sept. 30 on Azuthaiya, El Cirkulo, and two branches of Milky Way, which are operated by Nova Restaurants and Services Inc.

They also closed the Japanese restaurant Tsukiji, operated by Kaga Inc., in the same building.

The restaurants quickly resumed operations after their owners settled their obligations, tax authorities said.

“In a city famous for its fine dining restaurants and food connoisseurs, it became clear on Sept. 30, 2009, that for the next few days at least, Makati would have to do without the fine cuisine served at several of its well-known restaurants, all of whom had been found qualified for closure under the BIR’s flagship Oplan Kandado Program,” the bureau said in a statement.

East Makati assistant revenue district officer Mariza Rabago-Uy said the four restaurants, all owned by Nova Restaurants, were the subject of two separate monitoring operations.

Milky Way, which specializes in pastries, sandwiches and salads, was shut down for allegedly understating its sales for the months of January to August by at least 32 percent. Another branch of Milky Way at the Power Plant Mall on Rockwell Drive in Makati was also closed.

Nova Restaurants also operates Milky Way branches at the Greenhills Shopping Center on Ortigas Avenue and in Las Piñas.

El Cirkulo Restaurant, known for its Spanish and Mediterranean cuisine, was shut down because Nova Restaurants failed to register it as one of its branches, according to the tax bureau. Azuthaiya, which specializes in Thai cuisine, was closed for the same reason.

The tax bureau said its investigation showed that Tsukiji understated its sales by at least 31 percent, or P5.808 million, in the first half.

The five restaurants were able to resume their operations after their owners and representatives paid their penalties and settled their tax obligations, the bureau said.

“Matters were promptly resolved and it has since been business as usual,” said Nana Nadal of El Cirkulo.

But revenue district officer Ricardo Espiritu warned the restaurants that they would remain under close watch. –Roderick T. dela Cruz, Manila Standard Today