BIR Commissioner Kim Henares Weighs In On Mighty War Over Pmftc

The Bureau of Internal Revenue take sides over Mighty Corp and they urged Philip Morris International (PMI) to prove its allegations. They pinpointed Mighty Corporation in producing more than what it declares to the government. According to BIR Commissioner Kim Jacinto-Henares said that while the tax agency will not take sides in the dispute, the burden of proof rests on PMI and its local unit PMFTC Incorporation.

PMI accused Bulacan-based firm Mighty Corporation of unfair business practice by producing about double the volume that it declares to the BIR. It was resulted in tax revenue losses for the government.

“The burden of proof rests on PMI and PMFTC, they should prove that Mighty has evaded the government. If they cannot prove their allegation, then they may be liable for libel or slander,” Henares said.

Henares added that if only PMFTC agreed to the government’s proposal of adopting a unitary tax system, then PMI could have avoided its current difficulties in the Philippine market
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Mighty executive vice president Oscar Barrientos dismissed PMI’s allegation as part of a “smear campaign.” “Mighty Corp has proven that even a small local company can go toe to toe with a giant monopoly like PMFTC. Their smear campaign [is] really just their way of dealing with their failures in the market,” he said.

“There may be a bigger agenda behind the anti-Mighty smear campaign. Reforms in the excise tax system have obviously dealt a heavy blow to PMFTC,” he said.

Barrientos is calling for vigilance amid calls to review Republic Act 10351, the law which reformed the excise tax system.