The Bureau of Internal Revenue yesterday filed a tax evasion case against local cigarette manufacturer Mighty Corp. and its four key officials for allegedly avoiding payment of P9.5 billion in excise tax.
In a complaint-affidavit submitted to the Department of Justice, the BIR identified the respondents as MC President retired Lt. Gen. Edilberto P. Adan, Executive Vice President retired RTC Judge Oscar Barrientos, Vice President for External Affairs and Assistant Corporate Secretary Alexander Wongchuking, and Treasurer Ernesto Victa.
The complaint stated that they were accused “for unlawful possession of articles subject to excise tax and for possessing false, counterfeit, restored, or altered stamps in violation of Sections 263 and 265(c) of the National Internal Revenue Code.”
The complaint was based on the outcome of the joint BIR and Bureau of Customs raid at MC warehouses in San Simon, Pampanga.
It said that tax examiners using Taggant Reader or scanner have established that most tax stamps affixed on cigarette packs were counterfeit.
It also said inventory showed that 87 percent of the more than 33 million cigarette packs examined bore fake stamps.
“The company welcomes the filing of the complaint as it provides as an opportunity to clear our names and show we violated no laws. We will continue to cooperate with the government in its continuing effort at tax collection,” MC lawyer Sigfried Fortun said.
“As a consequence of its acts and omissions, MC, together with its responsible corporate officers, is liable to pay an estimated aggregate deficiency excise tax liability in the total amount of P9.564 billion,” the complaint added. (Jun Ramirez)