The Bureau of Internal Revenue (BIR) appeared to have won Round 1 of its legal battle against a big vape dealer when the Court of Tax Appeals (CTA) and the Metropolitan Trial Court (MTC) issued arrest warrants against the respondents.
Respondent Tap Fog and its executives were also ordered to pay a fine of over P1.24 billion.
The Department of Justice (DOJ) approved earlier the filing of the charges against Tap Fog and its corporate executives.
The cases were filed following a raid last November on Tap Fog by a BIR team headed by then Deputy Commissioner Romeo Lumagui Jr.
“This is a testament to our promise that after the execution of raids, cases will be filed. In the case of Tap Fog, a big-fish vape seller, the courts have already ordered the issuance of warrants of arrests. The BIR is closely monitoring the vape industry. Comply with the registration and taxation requirements under our laws. The vape industry is already a regulated industry, the BIR has already established a system for the proper registration and payment for this purpose”, Lumagui said.
The civil liability of the respondents involved in the criminal complaint was estimated at more than P1.2 billion, including fines and penalties.
Tap Fog and its alleged cohorts were accused of unlawful possession or removal of articles subject to excise tax without paying the taxes due, sale of heated tobacco products and vape products at a price lower than the combined excise and value-added taxes, selling or offering for sale any box or package containing articles subject to excise tax with false, spurious or counterfeit stamps or labels, wilful attempt to evade or defeat taxes, and failure to pay lawful taxes as provided by the National Internal Revenue Code.