BIR wants Megaworld closed, then retracts

Local business sector received a stunner yesterday after the Bureau of Internal Revenue (BIR) indicated it will issue a closure order on property developer Megaworld Corp.

The BIR, however, did not issue any reason for the plan to close the firm.

A BIR notice was sent to newspapers saying it will serve a closure order against Megaworld Corp. and requested coverage from newspapers.

The order said the closure will happen today, 18 May. Megaworld was apparently caught flatfooted by the BIR plan when newsmen sought a reaction.

BIR Deputy Commissioner Arnel Guballa, Regional Director Eduardo Pagulayan Jr. and several other officials will be present during the serving of the closure order, according to the BIR releasde.

Later on the day, Megaworld issued a statement saying “we have already reached out to the concerned BIR-Regional Office and the matter has been clarified and resolved.”

Traders said the commotion sent Megaworld’s shares price on a roller coaster ride yesterday as it plunged as much as 9.2 percent but later recovered at P2.71 per share.

Strange move

Still the issue remains without a clear indication on what caused the sudden closure order.

Francisco Canuto, compliance and corporate information officer said in a statement “Megaworld continues to fully support government’s revenue programs.”

BIR then issued an advisory that “the activity tomorrow (18 May 2022) was held in abeyance until further notice.

“Representatives from Megaworld Corporation manifested their full cooperation with all the requirements of the Bureau of Internal Revenue,” Pagulayan said.

BIR Commissioner Caesar Dulay and Finance Secretary Carlos Dominguez III have yet to issue their statements about the development.