THE Bureau of Internal Revenue (BIR) said on Monday that it obtained a favorable ruling from the Court of Appeals (CA) in a P796.95-million tax evasion case against a large-scale illicit cigarette operation.
In a statement, the BIR said the estimated tax deficiency of P796.95 million was generated following seizures from two facilities in San Rafael, Bulacan and Valenzuela City.
The BIR said the Court of Appeals took on the case after a favorable ruling by the Department of Justice.
“We assure the public that all BIR operations against illicit trade of cigarettes and vapes will result into the filing of criminal cases against those involved. We will raid your warehouses. We will file criminal cases. You will be arrested,” BIR Commissioner Romeo D. Lumagui, Jr. said.
In the Bulacan case, a Chinese national suspected of operating an illegal cigarette manufacturing facility in Barangay Moranquillo was found to have incurred a tax liability of about P596.23 million.
The authorities found 7,844 master cases of illicit cigarettes and manufacturing equipment in the facility.
The BIR said a separate human trafficking case was also filed by the Criminal Investigation and Detection Group after more than 100 workers were rescued from the premises.
“155 Filipinos were victims of human trafficking perpetrated by illicit cigarette businessmen. Not only were they forced to work for an illegal enterprise, they were also working under unsanitary and unhygienic conditions,” Mr. Lumagui said.
In the Valenzuela operation, the total tax liability was estimated at P200.72 million.
The BIR said it charged the lessee of a warehouse in Barangay Ugong for possession of 600 master cases of untaxed cigarettes. — Aubrey Rose A. Inosante