BIR: Raided cigarette factory in Cabanatuan has P636-M unpaid taxes

Manila: The Bureau of Internal Revenue (BIR) said Tuesday the raided cigarette factory in Cabanatuan City in Nueva Ecija last month has a tax liability of PHP636 million. In a statement, BIR Commissioner Romeo Lumagui Jr. said the recent raid of the cigarette factory in Cabanatuan City shows the government's continuous war against illicit trade. He said 'more raids' will be conducted. "The BIR will continue to raid large-scale illicit cigarette warehouses, traders, and manufacturers. This PHP636-million raid in Cabanatuan City of an illicit cigarette factory shows our commitment to a fair and equal marketplace in our country. Expect more raids,' he added. The BIR said the manufacturers of the raided cigarette factory are now under investigation for violating the National Internal Revenue Code (NIRC). Among the violations to the NIRC are unlawful possession or removal of articles subject to excise tax without payment of the tax; violations committed by manufacturers, importers, indentors, and wholesalers of any apparatus or mechanical contrivance especially for the manufacture of articles subject to excise tax and importers, indentors, manufacturers or sellers of cigarette paper in bobbins, cigarette tipping paper or cigarette filter tips; unlawful possession of cigarette paper in bobbins or rolls, etc.; failure to file return, supply correct and accurate information, pay tax withhold and remit tax and refund excess taxes withheld on compensation; attempt to evade or defeat tax; cigars and cigarettes; and registration requirements of the NIRC. It was earlier reported that 15 Chinese nationals were nabbed during the raid. The BIR further said the operators disguised the facility as a rest house behind a gasoline station in Cabanatuan City. It added the NBI found illicit cigarettes, machines, fake tax stamps, raw tobacco, and other materials used in manufacturing of cigarettes. Authorities also found that the facility is lacking sanitary practices, with raw tobacco left on the floor, collecting dirt and dus t. Source: Philippines News Agency