BIR charges Mighty Corporation for non-payment of excise taxes

March 22, 2017

The Bureau of Internal Revenue filed a criminal complaint with the Department of Justice against Mighty Corporation for unlawful possession of articles subject to excise tax without payment of tax and for having counterfeit stamps. Charged were Mighty Corporation president Edilberto Adan, executive vice president Oscar Barrientos, vice president for external affairs and corporate secretary Alexander Wongchuking and treasurer Ernesto Victa, a statement by the BIR said Wednesday. “As a consequence of its acts and omissions, Mighty Corporation, together with its responsible corporate officers, is liable to pay an estimated aggregate deficiency excise tax liability in the total amount of P9.564 billion,” the BIR said.. Mighty Corporation manufactures the following brands of cigarettes, among others: Mighty Menthol 100’s (Hard Pack); Mighty Menthol 100’s; Mighty Full Flavor King Size (Red); Marvel’s Menthol 100’s; Marvel’s Menthol (Hard Pack); and Marvel’s Menthol 100’s (Green). Its only BIR-registered production plant is located at 55 McArthur Highway, Barrio (now Barangay) Tikay, Malolos, Bulacan. Mighty Corporation was the subject of an on-the-spot surveillance operation of untaxed cigarette products by regional investigation division officers in San Simon Industrial Park, San Isidro, Pampanga pursuant to mission orders by the BIR regional director. The investigating officers entered four warehouses and conducted random tests of ten master cases of cigarettes stores in the warehouses which were being leased by Mighty Corporation as per certification and contracts of lease provided by the San Simon Industrial Park administrative office. In the presence of Bureau of Customs personnel, Philippine National Police officers, Mighty Corporation representatives, and barangay officials, internal revenue stamps affixed on the cigarette packs were tested using the Taggant reader, a BIR-registered equipment used to test the authenticity of stamps affixed on cigarette packs. “ “The tests conducted showed that the stamps are fake or not authentic. The master cases containing the said cigarettes with fake stamps were marked “Tested Fake” and confiscated.,” the BIR said. The inventory showed Mighty Corporation stored 66,281 master cases containing 33,140,500 packs of cigarettes. The investigation further showed that 87.5% of the said packs bore fake internal revenue stamps. “The stamps are fake since they did not contain one of the multi-layered security features of a valid internal revenue stamp,” the BIR said. DMS