A TAX-EVASION case will be pursued against the cigarette firm Mighty Corp. for violating the stamp tax law, Finance Secretary Carlos Dominguez III said Friday.
At the sidelines of a tax forum in Makati City, Dominguez also said the fake tax stamps found in the Mighty products were probably manufactured abroad and were being advertised in the website Alibaba.com of Chinese business tycoon Jack Ma.
“We are still counting [the number of cigarette packs with fake tax stamps] but the counting is slow because their [Mighty’s] lawyers are obstructing every little thing the BIR wants to do,” Dominguez said.
“So we are in the process of knowing the total amount in the three warehouses [alone].”
Dominguez made his statement even as President Rodrigo Duterte raised his demand to P5 billion in exchange for a possible settlement with Mighty Corp. to condone its alleged use of counterfeit tax stamps.
Should the officials of the Finance department agree with his proposal, a possible compromise could be seen between the government and the country’s oldest cigarette company in exchange for its donations to some hospitals in the country, Duterte said.
“The law allows for a settlement, just like in other crimes,” Duterte said in a speech before Mindanao officials in Davao City.
“There are businessmen who are clamoring to levy higher sanctions because of the interest involved. That’s why it will be P5 billion but it will depend first on [BIR Commissioner Caesar] Dulay, [Customs Commissioner Nicanor] Faeldon and [Finance Secretary Carlos] Dominguez. If they agree, then it’s okay with me.”
In reply to Duterte’s statement, Mighty Corp. said through its lawyer Sigfrid Fortun: “Anything to help the government achieve its tax and social upliftment activities will be fully supported by Mighty Corp. Following President Duterte’s comment on ways to address the tax issues besetting the company, it will continue to cooperate with government to bring quick closure to them.
Dominguez said the team that will determine the amount due for the fake stamps will include himself, Dulay and Faeldon.
“There is no settlement for this. How can we settle when we don’t know the total amount due yet,” Dominguez said.
“As soon as we get all the evidence, we will file the case. It is our duty to do so.”
On Thursday, Duterte said Mighty’s tax-evasion case might be settled if the cigarette firm would double the excise tax it failed to remit and pay P3 billion to rehabilitate hospitals in the country.
