Dominguez lauds BIR for ‘decisive action’ vs Mighty

Finance Secretary Carlos G. Dominguez III commended the Bureau of Internal Revenue (BIR) for its “assiduous investigative work” and “decisive action” against cigarette manufacturer Mighty Corp., which has led to the largest tax settlement made by a single entity in the country’s history.

Dominguez told officials and employees of the BIR that he looks forward to more accomplishments similar to the case of Mighty Corp., which has offered to settle its tax liabilities for a whopping R25 billion, exclusive of value-added tax charges, and to leave the cigarette business altogether.

Mighty Corp. thrived during the past administrations but was exposed for its fraudulent practice of using counterfeit cigarette tax stamps less than a year into the Duterte presidency after a series of operations done by the BIR and the Bureau of Customs (BOC) against the company.

“Please accept my warmest commendations for the great work the bureau has done in the case of Mighty Corp.,” Dominguez said.

“Assiduous investigative work and effective enforcement broke what could be the biggest instance of tax fraud in our country,” Dominguez said during the BIR’s anniversary celebration held at its head office in Quezon City,” he added.

Dominguez said the criminal cases filed by the BIR against Mighty before the Department of Justice (DOJ) had forced the firm to sell off its assets to Japan Tobacco International (JTI) in order to meet its tax deficiencies.

Mighty’s settlement offer of R25 billion will balloon to R30 billion once the VAT on the sale of its assets to JTI, estimated at R5 billion, is collected by the BIR, Dominguez had said in earlier forums.

“President Rodrigo Duterte ordered us to accept the settlement offer, producing a revenue windfall. This, again, is the largest tax settlement in our history,” Dominguez said.