Justice department dismisses P37.9b tax case vs Mighty Corp.

October 6, 2017

The Department of Justice dismissed three tax evasion complaints worth P37.9 billion against Mighty Corp. after the Bureau of Internal Revenue moved to withdraw  its complaints against the firm.

In a joint resolution released on Friday, the three-man DOJ panel granted the September 26, 2017 motion of the BIR seeking for the withdrawal its complaints against Mighty Corp., which entered into a compromise settlement with the government of its excise tax deficiency  and its pending tax-related issues.

The DOJ’s decision came after President Rodrigo Duterte ordered the Department of Finance and the BIR to accept the tobacco firm’s offer of P25 billion as tax settlement in exchange for the dismissal of all tax charges filed against them by the tax collection agency.

In seeking the dismissal of the complaints against Might Corp, the BIR invoked Section 204 of the National Internal Revenue Code (NIRC), which allows the Commissioner the power to “compromise, abate and refund, or credit taxes.”

“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.” DMS