President refuses Mighty’s offer to pay R13-B tax on installment

Justice Secretary Vitaliano Aguirre II said yesterday President Duterte has rejected the 113-billion payment on installment basis offered by Mighty Corporation as a compromise for its tax liabilities of 19.5 billion.

At the same time, Aguirre said the Department of Justice (DOJ) is set to start its preliminary investigation on the 19.5-billion tax evasion charges filed by the Bureau of Internal Revenue (BIR) against

Mighty Corporation and its owners and officers.

Aguirre said Mighty Corporation has offered to pay 113 billion as compromise payment for its tax liabilities and penalties so that the government would no longer pursue criminal cases against the firm and its executives.

“Mighty Corporation is willing to pay the amount, but requested to settle it in a staggered scheme of 11 billion per payment,” Aguirre said.

“But I think the President Duterte doesn’t like it. He wants full payment of the amount because he doesn’t want this to be another Jack Lam (online gambling tycoon),” he stressed.

Thus, Aguirre said, Mighty Corporation would have to pay the amount in full “if they really hoped not to face criminal prosecution, trial before the Court of Tax Appeals and payment of bigger amount of tax deficiency and penalties.”

He explained that a compromise agreement between the government and erring tax payers is allowed under the National Internal Revenue Code (NIRC).

But he said the preliminary investigation set by the DOJ against Mighty Corporation’s responsible officers has to proceed.

“I just formed the three-member panel. We have to make Mighty Corporation answer the charges first and then the BIR will reply before the case will be submitted for resolution,” the justice secretary said.

There were reports that aside from the 19.5 billion in tax evasion charges, the BIR has been preparing more cases against Mighty Corporation for its other cigarette packages with alleged fake tax stamps seized from its other warehouses.