THE Department of Justice (DOJ) has junked the three tax evasion complaints, worth P37.9 billion, filed against cigarette firm Mighty Corp. after the Bureau of Internal Revenue (BIR) agreement to a settlement.
The cigarette firm has earlier offered P25-billion tax settlement prompting the BIR to file a motion to withdraw its complaints on September 26.
The BIR, in its motion, said the BIR Commissioner has the power to "compromise, abate and refund, or credit taxes," under Section 204 of the National Internal Revenue Code (NIRC).
"Complainant BIR referred to the approved settlement of Mighty Corporation's excise tax as well as compromise settlement of all its pending tax-related issues including that of its officers and shareholders," the joint DOJ resolution dated October 2 stated.
"It behooves this Office to grant the motion if only to promote greater interest of the parties involved," it added.
Last July, President Rodrigo Duterte said he had ordered the BIR to accept the settlement money. Part of it, he said, will be used to rehabilitate war-torn Marawi and Ormoc, which has been recently struck by an earthquake.
The complaint against Mighty stemmed from the series of raids in its warehouses in Pampanga, Bulacan and in General Santos City where cigarettes with fake tax stamps were seized.
Cleared from any charges are respondents Mighty president Edilberto Adan, executive vice president Oscar Barrientos, assistant corporate secretary Alexander Wongchuking, and treasurer Ernesto Victa. (SunStar Philippines)