Manila: The Bureau of Internal Revenue (BIR) on Monday reported the filing of tax evasion charges before the Court of Tax Appeals against large-scale illicit cigarette businesses for failure to pay PHP793 million in taxes.
According to Philippines News Agency, BIR Commissioner Romeo Lumagui Jr. announced that the cases were filed before the tax court on July 1 after the Department of Justice (DOJ) ruled in favor of the complaints filed by the BIR against illegal cigarette operations in Valenzuela City and San Rafael, Bulacan.
The BIR charged the lessee of a warehouse located in Barangay Ugong, Valenzuela City, for violation of Section 263 of the National Internal Revenue Code of 1997 (Unlawful possession of excisable articles without tax payment) after 600 master cases of untaxed cigarettes were discovered in the facility in early November last year during joint simultaneous operations. The total tax liability involved in this case is estimated at PHP200.7 million.
Meanwhile, a PHP596.2 million tax evasion case was filed against a Chinese national believed to be operating an illegal cigarette manufacturing facility in Barangay Moranquillo, San Rafael, Bulacan, after 7,844 master cases of illicit cigarettes and manufacturing paraphernalia were found in the facility. The BIR charged the individual for multiple violations of the Tax Code, including Section 260 (Unlawful possession of cigarette tipping paper or filter tips), Section 263 (Unlawful possession of excisable articles without tax payment), and Section 265-B (Illegal possession of manufacturing equipment for cigarette production).
These charges are based on the 7,844 master cases of illicit cigarettes and manufacturing paraphernalia found in the facility during the same joint simultaneous operation. A separate human trafficking case was also filed by the Criminal Investigation and Detection Group (CIDG) after 155 trafficked workers were rescued from the premises.
Lumagui assured the public that the BIR will not stop pursuing illegal cigarette traders. 'We will raid warehouses, seize illicit products and equipment, file criminal charges, and ensure arrests. No one, even the biggest operators, escapes the law,' Lumagui said. 'We assure the public that all BIR operations against illicit trade of cigarettes and vape will result into the filing of criminal cases against those involved.' The BIR chief asked the public to support the agency's efforts by reporting activities related to the sale or manufacture of untaxed cigarettes.
