Justice Secretary Vitaliano Aguirre said on Friday that the government was “P40 billion richer” after Mighty Corp. finally paid its tax liabilities and penalties.
Aguirre disclosed this after the Department of Justice granted the Bureau of Internal Revenue’s motion to withdraw the tax evasion complaints filed against the country’s number two cigarette manufacturer.
“We could consider this case as closed. (The) government of the Philippines is P40 billion richer,” Aguirre told reporters.
According to the justice secretary, of the P40 billion, P30 billion represent the company’s payment, while the P10 billion represent taxes and penalties.
Mighty had originally offered a P25-billion settlement which President Rodrigo Duterte said the Department of Finance and BIR should accept, in July.
Under that settlement, Mighty Corp., which has 23 percent of the local cigarette market, would also drop out of the tobacco business.
According to the DOF, the company sold off its assets to Japan Tobacco International in order to meet its tax deficiencies.
On August 22, the Japanese firm, one of the world’s biggest tobacco companies, whose global brands include Winston and Camel, announced that it was purchasing Mighty for P46.8 billion.
Asked to comment on the justice department decision, a Japan Tobacco spokesman in Japan said “the tax liability is an issue that should be solved appropriately between Mighty Corp and the Philippine government.” (Agence France Presse)