DOJ starts preliminary probe on Mighty Corp. tax evasion case

A coast guard personnel (right) stand guard to the sized by the Bureau of Customs the alleged smuggled Mighty cigarettes in two 20 footer container vans at pier 4. (JUNJIE MENDOZA)

The Department of Justice (DOJ) started Thursday the preliminary investigation on the P1.39-billion tax evasion case against local cigarette maker Mighty Corporation.

Respondents to the complaint filed by the Bureau of Internal Revenue (BIR) are Mighty Corporation owner Alexander Wongchuking who sits as vice president for external affairs and corporate secretary; president, retired Lt. Gen. Edilberto Adan; executive vice-president, retired judge Oscar Barrientos; and treasurer Ernesto Victa.

Assistant State Prosecutor Ma. Lourdes Uy, a member of the prosecution panel handling the cases against the company, said the respondents in the case are expected to submit their counter-affidavits.

The P1.39 billion tax evasion complaint is the third one filed before the DOJ by the BIR against the respondents.

The first two complaints have yet to be resolved by the panel of prosecutors.

The first complaint by BIR against Mighty for P9-billion tax evasion has been submitted for resolution while the second complaint involving P26.93 billion tax evasion, Mighty Corp. has yet to submit a rejoinder

Under the three complaints, the respondents are accused of Unlawful Possession of Articles Subject to excise Tax without Payment of the Tax, and for Possessing False, Counterfeit, Restored or Altered Stamps, in violation of Section 263 and 265(c) of the National Revenue Code of 1997, as amended (Tax Code).

The first complaint stemmed from the discovery that the cigarette products stored in Mighty Corporation warehouses at the San Simon Industrial Park, San Isidro, Pampanga carried fake internal revenue stamps.

The other two complaints are based on other fake tax stamps found on its cigarette products stored in warehouses in in Barangay Matimbubong, San Ildefonso, Bulacan and the Sunshine Corn Mill warehouse in General Santos City, respectively. JE/rga