BIR files PHP793M tax evasion cases against illicit cigarette ops, wins one at CA

On Monday, the Bureau of Internal Revenue (BIR) announced that it had filed tax evasion cases against two large-scale illicit cigarette operations for PHP793 million in unpaid taxes and obtained a favorable ruling from the Court of Appeals on one case involving PHP796.95 million.

The BIR charged a warehouse lessee in Valenzuela City with unlawful possession of goods subject to excise taxes after 600 master cases of untaxed cigarettes were discovered, amounting to an estimated PHP200.7 million in tax deficiencies.

Another case was filed against a Chinese national suspected of operating an illegal cigarette manufacturing facility in Bulacan where 7,844 master cases of illicit cigarettes and manufacturing paraphernalia were found, with an estimated PHP596.2 million in tax deficiencies.

Both cases received support from the Department of Justice (DOJ), which ruled in favor of the BIR after joint simultaneous operations conducted by the agency last November.

The BIR also filed a separate human trafficking case involving 155 trafficked workers rescued from the premises, highlighting the broader impact of illegal cigarette operations.