Dominguez orders filing of charges vs cigarette firms involved in tax evasion
Finance Secretary Carlos G. Dominguez III is urging the government’s two main tax agencies to file charges against companies proven to be the owners of illicit cigarettes.
Dominguez said “if the evidence warrants, I urge the [Bureau of Internal Revenue] BIR and [Bureau of Customs] BOC to file the appropriate charges in court as soon as possible” against the owners of cigarette packs with fake tax stamps baring the brand “Mighty.” Earlier, the Customs seized 12-billion worth of smuggled and counterfeit tobacco products, including cigarette brands manufactured by Bulacan-based Mighty Corp. that contained fake tax stamps.
The finance chief also wants government officials in cahoots with the erring entities included in the charge sheets if they are found to have been involved in these tax evasion bids.
“They (BOC and BIR) should speed up their investigations and also look into the possible involvement of bureaucrats acting as protectors of these large-scale tax evasion attempts,” Dominguez said in a statement.
But the BIR said it will not take criminal or civil action against any cigarette manufacturer suspected of using fake stamps on their products unless it completes its audit of all other producers and importers.
BIR Deputy Commissioner for Legal Service Jesus Clint Aranas issued clarificatory statements to deny news reports that the bureau is readying tax dodging case against local manufacturer Mighty Corporation (MC) following seizure recently of suspected untaxed cigarette brands in Mandaue City.
The seized contraband included brands produced not only by MC but its competitor Philip Morris Fortune Tobacco Corporation (PMFTC) as well as imported varieties.
Aranas said everybody in the industry has to be investigated to preclude charges of favoritism and bias.
He stressed that charges must be backed by solid and direct evidence to stand a court trial, adding it is unwise to take sides in the ongoing trade war between PMFTC and MC.
Aranas said BIR Commissioner Caesar R. Dulay has already scheduled a dialogue with cigarette manufacturers to establish and determine the sources of untaxed cigarettes whether they are produced locally or smuggled into the country.
He described the meeting as crucial because the government is losing huge amount of excise and income taxes from the racket. (With a report from Jun Ramirez)