Manila: The Bureau of Internal Revenue (BIR) on Tuesday launched its Nationwide Oplan Kandado (Padlocked) 2026, targeting 419 cases with an estimated PHP742.1 million in potential tax exposure based on corresponding five-day VAT compliance notices. Operations were monitored through the National Command Center at Revenue Region No. 7A in Quezon City, where various revenue regions reported the results of their morning operations and ongoing enforcement activities across the country.
According to Philippines News Agency, the bureau conducted simultaneous operations under the operational guidance of "Assistance First to Comply. Enforcement Only When Necessary." By the close of the operations, the BIR had implemented 132 closure orders in accordance with existing laws and regulations. Meanwhile, numerous other taxpayers avoided closure by registering their businesses, filing required tax returns, and settling their tax obligations before the issuance of a closure order.
BIR Commissioner Charlito Martin Mendoza emphasized that the bureau resorts to temporary closures only as a last resort after taxpayers have been extended assistance, informed of their obligations, and given every reasonable opportunity to comply. 'Every closure carried out today should have come only after the Bureau had extended assistance, explained the taxpayer's obligations, and provided every reasonable opportunity to comply. Only after those efforts have failed does enforcement become necessary,' he said.
Mendoza underscored that such an approach aligns with the directives of the national leadership to streamline and simplify tax administration. 'Gawing mas maayos ang serbisyo ng gobyerno. Iyan ang malinaw na direksyon at utos ni Pangulong Ferdinand R. Marcos Jr., at iyan ang ginagawa natin sa ilalim ng BIR DARES (Improve government service, that is the clear directive of President Ferdinand R. Marcos Jr. and that is what we are doing under BIR DARES),' he added.
Mendoza also explained that the BIR had already laid the groundwork for this approach through its C.H.A.T. Drive (Counsel, Help, and Assist Taxpayers) launched last February. During the drive, revenue regions and revenue district offices visited business establishments to assist taxpayers and encourage voluntary compliance before shifting to enforcement. 'When taxpayers are willing to comply, we assist them. But when there is clear and deliberate refusal, we enforce the law. Firm when necessary. Fair at all times,' he said.
Under existing guidelines, before an establishment is considered for temporary closure, the BIR undergoes a strict process of surveillance, validation, and issuance of required statutory notices. Throughout this period, taxpayers are given sufficient opportunity to rectify deficiencies, register their businesses, issue proper invoices or receipts, file required tax returns, and settle outstanding obligations.
Oplan Kandado has been extended to cover online businesses, which are similarly expected to comply with registration, invoicing, filing, and payment regulations. Mendoza warned that appropriate enforcement measures, including online takedown mechanisms where authorized by law, form part of the BIR's ongoing efforts to ensure compliance in both physical and digital marketplaces. He said Oplan Kandado will remain implemented year-round by revenue regions and revenue district offices nationwide.
