Saturday, April 23, 2016

Excise Tax and Mighty Corp

In the imposed “sin tax” law, or RA 10351 on cigarettes and liquor, the reaction to reports that Bulacan-based Mighty Corp., owned by the Wongchuking family, got away last year with a P5-billion tax evasion allegation.
Finance Secretary Cesar Purisima ordered an investigation ofMighty C0rp for manifest smuggling and massive tax evasion in which addressing his memo to the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR).
The BOC answered with its own full-page paid ad saying that prima facie evidence of smuggling against Mighty Corporation, indicating that the company abused its privileges in its BOC-accredited bonded warehouse at its factory site in Bulacan. Prior to that, Mighty Corporation published in an ad, denied the smuggling and tax evasion, and it already remitted to the government some P8 billion in excise tax in 2013.
According to reports, total collection of the “sin tax” reached only P90 billion last year, although the target for the year was much higher at more than P105 billion.


House ways and means committee chair Rep. Romero Quimbo has commenced an investigation of possible tax evasion done by cigarette makers. He is the congressman of the 2nd District of Marikina, which is the site of one of the biggest cigarette factories in the country, owned by Philip Morris Fortune Tobacco Corp. (PMFTC). He is aware of the workers at the Marikina factory of PMFTC already held protest rallies at the Batasan Pambansa. And calling for the House to investigate tax evasion in the cigarette industry, claiming that it would cost them their jobs. There are some reports that the Marikina factory of PMFTC has already implemented a four-day-work week, instead of six days.

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