Trader faces raps over 1300-M fake cigarette tax stamps

The Bureau of Internal Revenue (BIR) filed on Thursday before the Department of Justice

(DOJ) a complaint against a Tacloban City-based businessman after a raid in his warehouse yielded 1300 million worth of fake cigarette stamps, a violation of the National Revenue Code of 1997.

Facing raps is James Laplana Sy, the sole proprietor of Dynasty Square based in Tacloban City.

In its complaint, the BIR accused Sy 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 Sections 263 and 265(c) of the National Revenue Code of the 1997, also known as the Tax Code.

The BIR explained that the case is an offshoot of the ongoing investigation of the National Bureau of Investigation (NBI) against Sy.

It cited that the cigarette products with fake tax stamps were discovered during the NBI’s verification and surveillance activities at Sy’s three warehouses and apartment in Ormoc City.

“A total of 20,026 master cases containing various cigarettes with fake stamps were marked and seized from the respondent,” the BIR stated.

The BIR said the boxes of cigarette were found “inside boxes with electric fan and microwave labels” and have “spurious or counterfeit excise stamps which bear and carry the same serial number.”

The complainant stated that after verification, the stamps “did not contain several of the multi-layered security features of a valid internal revenue stamp.”

“Mr. Sy’s unlawful possession of the 2,026 master cases of various packs of cigarettes attached with fake internal revenue stamps is illegal and a violation of the Tax Code,” the BIR said.

“As a consequence of the criminal act, respondent Mr. Sy, evaded payment of the correct excise tax and is liable to pay an estimated aggregate deficiency excise tax liability in the total amount of 1354,550,000, inclusive of increments,” it added.