Businessman hit with P3.4-B tax evasion rap
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Thu, 25 Apr 2019 16:16:30 +0000
THE Bureau of Internal Revenue (BIR) filed on Thursday a P3.4-billion criminal and tax evasion charges against an alleged manufacturer of fake cigarettes in Pangasinan province.
In charges filed with the Justice department, the BIR identifed the manufacturer as Danilo Calugay, a businessman operating since April 29, 2013 under the tradenames “Lucky DC Builders and Construction Supplies,” “Lucky DC Convenience Store” and “Lucky DC Gasoline Station.”
In a statement, the BIR said its Strike Team raided last November an allegedly illegal cigarette factory in Portic village in Bugallon town and a raw-materials warehouse in Mangaldan municipality.
“It was discovered during the operation that the said factory was found to be unregistered and an unlicensed manufacturer of cigarettes [was] employing a number of local workers,” it added.
Several cigarette-making and packing machines, 495 master cases, seven reams of fake cigarettes and 8,620,00 fake cigarette stamps were reportedly seized during the raid.
The internal revenue stamps affixed in the seized cigarette packs were also found to be fake, according to the BIR.
“As a consequence of the criminal act of Mr. Calugay in not registering his business, [and] producing, manufacturing and possessing spurious and counterfeit internal revenue stamps, it evaded the filing and payment of the correct excise tax amounting to P3.4 billion, inclusive of increments,” the bureau said.
Contraband cigarettes have been blamed by the Finance department as a significant source of lost revenues. The BIR recently said the illegal tobacco trade had shifted
from smuggling cigarettes to producing counterfeits using undocumented machines from China.
The bureau also recently discovered a new scheme used by illicit tobacco traders to avoid taxes.
Recycled tax stamps — gathered through a promo where these are exchanged for goods — are reportedly being used to sell fake cigarettes.
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