It may surprise many that the little-known El Cielito chain of inns topped the BIR's list of top 50 non-large restaurant taxpayers in Makati for 2011. El Cielito Tourist Inn Inc. paid P39.54 million in taxes in 2011.
Pizza chain Yellow Cab Food Corp. is the second top taxpayer, paying P17.57 million.
Fried chicken restaurant Max's Makati Inc. ranked third, paying P3.44 million in taxes.
Ranked fourth is Sugi Management Corporation, which owns Japanese restaurant Sugi, paying P2.32 million in taxes. Fifth is Dencio's Bar and Grill franchisee DFSI-One Nakpil Incorporated, which paid P1.42 million in taxes.
Rounding out the top 10 are: Cowboy Grill owner Golden Pizza Incorporated (P1.36 million), Shanjon Specialty Foods Incorporated (P1.29 million); Via Mare Inc.(P1.26 million), Ballpark Snacks Inc. (P1.18 million) and Bistro Americano Pedro Gil (P1.12 million).
The Bureau of Internal Revenue (BIR) is wondering why the taxes paid by these restaurants were so low.
BIR Commissioner Kim S. Jacinto-Henares said the dining establishment's taxes are considerably less than her estimates.
"It seems to me that this amount may only represent their one-month of operation, not full year 2011," she said.
Finance Secretary Cesar V. Purisima agreed, saying consumers should check if their favorite restaurants pay the correct taxes.
“Is your favorite restaurant in this list? If it is not in this list, the next time you go to your favorite restaurant, you better ask the owner, why?," he said.
Purisima further noted that the gross profit margin for a food business is around 50%, while other large expenses include rent and employees' salaries.
“(With these taxes) these companies is making, P30,000, or about P60,000 a month, but when you go to restaurants in Makati, you have to fall in line and make reservations in some cases," he said.
source: www.abs-cbnnews.com
