DOJ files tax evasion raps vs. 5 Chinese cigarette dealers

The Department of Justice on Tuesday announced it has filed a tax evasion case against five Chinese allegedly involved in illicit cigarette trade over tax liabilities amounting to P5.7 billion. 

In a statement, the DOJ said the case was filed with the Court of Tax Appeals on March 14 for violation of Section 258 (Unlawful Pursuit of Business) in relation to Section 236 and for violation of Section 263 (Unlawful Possession of Articles subject to Excise Tax without Payment of the Tax).

This is under the National Internal Revenue Code of the Philippines, as amended by Republic Act 11346 and RA 11467.

“In light of this development, Warrants of Arrest against the 5 accused Chinese nationals are expected to be issued in the soonest possible time,” the DOJ said.

According to the DOJ, the five foreigners’ involvement in the trade was discovered during a joint operation against illicit cigarettes in six different locations in Valenzuela and Bulacan from November 6 to November 7.

This led the Bureau of Internal Revenue (BIR) to file a complaint with the Valenzuela City Office of the City Prosecutor in February.

“The overwhelming pieces of evidence submitted by the BIR show that the tax liability of the accused Chinese nationals amounted to P5,764,761,450 based on the 21,000 master cases of illicit cigarettes seized,” the DOJ said.

For its part, the BIR said the case is part of its largest raid against illicit cigarettes in 2024.

“This win is a testament to our commitment to pursue every criminal involved in illicit cigarette trade,” BIR Commissioner Jun Lumagui Jr. said in a separate statement.

“We will raid your warehouses. We will destroy all illicit cigarettes and machines. We will file cases against you. You will be arrested," he added.—Joahna Lei Casilao/AOL, GMA Integrated News