BIR files 3rd tax evasion rap vs Mighty Corp

The Bureau of Internal Revenue (BIR) on Friday filed third complaint before the Department of Justice (DoJ) against controversial cigarette maker Mighty Corporation. (Photo: Department of Justice Philippines/ Facebook)

MANILA—The Bureau of Internal Revenue (BIR) on Friday filed third complaint before the Department of Justice (DoJ) against controversial cigarette maker Mighty Corporation.

The tax bureau named the same respondents were Mighty Corp official Alexander Wongchuking who sits as its vice-president for external affairs and assistant corporate secretary; president, retired Lt. Gen. Edilberto Adan; executive vice-president, retired Judge Oscar Barrientos; and Treasurer Ernesto Evicta in the third tax evasion case.

BIR said the respondents is facing of Unlawful Possession of Articles Subject to excise Tax without Payment of the Tax, and for Possessing False, Counterfeit, Restored or Altered Stamps, in violation of Section 263 and 265(c) of the National Revenue Code of 1997, as amended (Tax Code).

The latest complaint stemmed from the discovery that its cigarettes stored in the Sunshine Corn Mill warehouse in General Santos City bore fake internal revenue stamps.

During checks conducted in April and May using a Taggant reader, the BIR said in a statement that 89.14 percent of the 67,470 packs there “bore fake internal revenue stamps.

“As a consequence of the criminal act of Mighty Corporation, together with its responsible officers, of using fake internal revenue stamps, it evaded payment of the correct excise tax and is liable to pay an estimated aggregated deficiency excise tax liability in the total amount of PHP1.39 billion, inclusive of increments,” said the BIR.

Last May 9, the BIR filed the second new tax evasion case against the same respondents involving PHP26.93 billion in allegedly unpaid excuse tax for unlawful possession of articles subject to excise tax without payment of the tax and for possessing false, counterfeit, restored or altered stamps in violations of the National Internal Revenue Code of 1997.

Last May 18, the DOJ panel set the next preliminary investigation on the first complaint filed by BIR on PHP9.564-billion tax evasion complaint against controversial cigarette firm Mighty Corporation on May 30.

During the continuation of hearing on May 18, the BIR submitted its reply to the counter-affidavits filed by all of the respondents to the DOJ panel composed of Senior Assistant State Prosecutor Sebastian Caponong Jr. who sits as its chairperson and Assistant State Prosecutors Ma. Lourdes Uy and Mary Ann Parong.

The three-member panel handle the preliminary investigation aimed at determining whether the company’s officials should be charged over the unlawful act of using fake stamps on cigarette packs and evading payment of the tobacco excise tax.

The panel set the next hearing date on May 30 for the Mighty Corp.’s rejoinder.

Earlier, Justice Secretary Vitaliano Aguirre II said that the two complaints will be consolidated and handled by the same panel of prosecutors.