Thursday July 19, 2018

DOJ ends probe into 1st tax case vs Mighty

THE first tax evasion complaint against embattled local tobacco firm, Mighty Corporation, has been submitted for resolution.

After three hearings into the P9.56-billion tax evasion complaint filed by the Bureau of Internal Revenue (BIR) against the cigarette firm, the panel of prosecutor led by Assistant State Prosecutor Sebastian Caponong Jr. terminated the probe.

This was after the corporate officers of Mighty, including Alexander Wongchuking, submitted their rejoinder affidavit in answer to the BIR's complaint that stemmed from its raid in Mighty's warehouses in San Isidro, Pampanga, wherein cigarettes with fake tax stamps were seized.

Mighty earlier asked the DOJ to dismiss the complaint filed against it, saying the BIR's tax reader is unreliable, the complaint was not based on facts and that the BIR failed to do a prior tax assessment on cigarette.

After terminating the probe, Caponong scheduled the first hearing for the second tax evasion complaint against Mighty on June 8.

The complaint assessing the firm of P26.93-billion worth tax liabilities is in relation to the BOC's raid in Mighty's warehouses in San Ildefonso, Bulacan, on March 24.

No hearing, however, has been scheduled yet for the third complaint that assessed the corporation of P1.39 billion in tax liabilities.

The complaint was based from the BOC's raid in the firm's warehouse in General Santos City that led to the seizure of P4.7 million worth of cigarette packs with fake tax stamps.

In total, the owners of the 72-year-old domestic firm owe the government P37.884 billion in taxes.

Named respondents in the three complaints are Mighty President and former Armed Forces Deputy Chief of Staff Edilberto Adan, Mighty Corporation Vice President for External Affairs and Assistant Corporate Secretary Alex Wongchuking, Executive Vice President and retired Judge Oscar Barrientos and Treasurer Ernesto Victa. (SunStar Philippines)