BIR, Customs to pursue big tax evaders

The head of the Duterte administration’s economic team has ordered the country’s two biggest revenue agencies to go after more big tax evaders while making it easier for taxpayers to settle their dues.

In a statement Friday, Finance Secretary Carlos Dominguez III said: “Beyond helping improve revenue collections, the case of Mighty Corp. sends a clear and resounding message to other corporate entities that fudge the numbers and befuddle the books. The revenue agencies will go after them with hammer and tongs.”

Dominguez was referring to the case of homegrown cigarette manufacturer Mighty, which early this year was found using fake internal revenue stamps to dodge tax payments.

Both the bureaus of Customs and of Internal Revenue went after Mighty, which was later slapped with three tax evasion cases worth almost P38 billion.

The government eventually decided to settle with Mighty for P25 billion, under which the Bulacan-based firm had to sell P46.8 billion in assets to global cigarette giant Japan Tobacco International.

As part of the tax settlement, the Department of Justice in October dismissed the tax evasion cases against Mighty owner Alexander Wongchuking, president Edilberto Adan, executive vice president Oscar Barrientos and treasurer Ernesto Victa.

“The crackdown on Mighty will have to be credited to the vigilant and unyielding effort of our revenue agencies. I look forward to other accomplishments like this one in the coming months,” Dominguez said.

According to Dominguez, “excise tax payments from Mighty’s cigarette brands registered an increase of over 200 percent in the September-to-October period alone since JTI took over the firm’s operations.”

As such, the BIR was also able to generate an impressive collection rate of 11.84 percent in the first three quarters of the year, and a goal attainment rate of 96.96 percent by continuing to implement tax administration reforms aimed at broadening the tax base, updating the schedules of zonal values, expanding the options for payment of taxes and simplifying tax forms, according to Dominguez.

“Let me congratulate Commissioner Caesar Dulay, the deputy commissioners and the officers of the BIR for the good work you have put in. I urge you to sustain the effort at completely modernizing tax administration in the country,” the finance chief said.

Moving forward, Dominguez said the BIR must exert every effort not only at making the agency more efficient at what it does but also making the collections process more convenient for its clients, the taxpayers.

“Paying taxes is painful enough for many of us. Let us minimize inconveniences in the process,” Dominguez said. —BEN O. DE VERA