Home » Headlines » Tax raps vs cigarette company withdrawn

Tax raps vs cigarette company withdrawn

By: Jeffrey G. Damicog

After securing a compromise deal with the government, the Department of Justice (DoJ) has allowed the withdrawal of the multi-billion peso tax evasion complaints filed against local tobacco maker Mighty Corporation.

The DoJ panel of prosecutors handling the tax evasion cases has issued a joint resolution dated Oct. 2 which granted the motion of the Bureau of Internal Revenue (BIR) to withdraw the three complaints against the tobacco firm.

“Wherefore, premises considered, complainant BIR’s motion to withdraw dated September 26, 2017 is hereby granted.

The complaints in the instant cases are hereby deemed withdrawn,” read the resolution issued by the panel of prosecutors handling the cases.

The resolution is signed by Senior Assistant State Prosecutor Sebastian Caponong Jr., who sits as the chairman of the panel, and Assistant State Prosecutors Ma.Lourdes Uy and Mary Ann Parong. It is also approved and signed by Acting Prosecutor General Jorge Catalan Jr. and Senior Deputy State Prosecutor Emelie delos Santos.

In its motion, the BIR informed the DoJ that Mighty Corporation’s settlement of all of its pending tax-related issues including that of its officers and shareholders has been approved.

The BIR cited that under Section 204 of the National Internal Revenue Code (NIRC) the Commissioner, Caesar Dulay, has “the authority to compromise, abate and refund or credit taxes.” The settlement agreement over the tax liabilities of the cigarette firm was reached after the Japan Tobacco Inc. (JT) acquired the Mighty Corporation last September for $936 million.

comments