A lawmaker has called on revenue-generating agencies to persist in the campaign against tax evaders and catching more “big fish”, like Mighty Corp., whose tax liabilities of P25 billion was the largest ever paid the government by anyone, according to the Department of Finance (DOF).
Camarines Sur Rep. Luis Raymund F. Villafuerte Jr. lauded the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) for exposing Mighty Corp.’s massive tax fraud, the accomplishment underscoring the Duterte administration’s political will and commitment to enforce tax laws and run after big-time tax dodgers.
“The BIR and BOC have shown that they can do their jobs effectively if the President and the secretary of finance are hell-bent on enforcing tax laws to the letter. They should be able to catch more big fish like Mighty [Corp.] to send a clear signal that the government means business in its war against corruption and tax fraud,” said Villafuerte, who is also vice chairman of the House Committee on Appropriations.
He said the government’s strong stance against tax evasion and initiatives to improve tax administration should all the more convince the Senate to pass the first package of the Comprehensive Tax Reform Program (CTRP) that the House of Representatives already approved in the previous Legislative session.
“Effective tax administration, complemented by tax policy reforms to be carried out via the CTRP will provide the government the funds it needs to push through with its massive infrastructure buildup and maintain or surpass its economic growth targets of 7 percent to 8 percent starting next year,” he added.
Mighty Corp., a Bulacan-based cigarette manufacturer, was caught using fake internal-revenue stamps in three separate raids conducted on its warehouses earlier this year by both the BIR and the BOC.
It was then forced to sell its assets to Japan Tobacco International (JTI), offer a settlement of its tax liabilities with the government amounting to P25 billion that Finance Secretary Carlos G. Dominguez III said could rise to P30 billion once the value-added tax (VAT) on the sale is paid.
In his second State of the Nation Address (Sona) on July 24, President Duterte directed the DOF and the BIR to accept Mighty Corp.’s offer to avoid a protracted legal battle with the firm that could take years to resolve.
“The President made the right decision in accepting the settlement sum. Thirty billion pesos will help cover the costs of its ongoing effort to rehabilitate areas, like Marawi and other places hit by natural calamities,” Villafuerte said.
Earlier, Dominguez issued marching orders to the BIR and BOC to work together and catch more “big fish” who deny the government billions of pesos in taxes.
“You better line up another big one. Next year, if possible, catch another big fish,” Dominguez told Commissioners Caesar R. Dulay and Nicanor E. Faeldon at a recent DOF executive committee meeting.
Dominguez said another P20 billion or P30 billion would be a good target for the BIR and the BOC by running after tax cheats.