By Benjamin Pulta
MANILA – The Bureau of Internal Revenue (BIR) on Tuesday filed before the Department of Justice (DOJ) criminal charges for tax evasion against large-scale illicit vape businesses for failure to pay PHP8.68 billion in taxes.
In a statement, BIR Commissioner Romeo Lumagui Jr. said the charges involve illegal vape traders selling the brand names Flava, Denkat and Flare.
“Today, the BIR has filed criminal cases for tax evasion against large-scale illicit vape businesses. They have failed to pay PHP8,681,028,850.82 in taxes. We have warned all those who want to enter the vape industry to register with the BIR and pay proper taxes. This is what happens when you keep violating our tax laws.” Lumagui said.
The criminal charges include unlawful possession of vape products without payment of excise tax under Section 263; tax evasion under Section 254; and failure to file excise tax returns under Section 255, all in violation of the National Internal Revenue Code of 1997, as amended.
The recovery of deficiency excise taxes and penalties which have not been paid by the illicit vape traders, amounting to almost PHP9 billion, are included in the criminal charges filed by the BIR.
“Expect more criminal cases to be filed against illicit vape traders. Whether your business is large or small, as long you sell illicit vape, you will be imprisoned. Celebrities and influencers found to be in conspiracy with illicit vape traders will also be imprisoned. Illicit vape ends now,” Lumagui said.
Lumagui asked the public to report all stores with illicit vape products and advertisers to be responsible in promoting only legitimate products that are tax compliant.
Tuesday’s filing is part of a broader effort by the BIR to crack down on illicit trade and tax evasion across multiple industries.
The agency recently joined the Bureau of Customs in the destruction of PHP3.26 billion worth of smuggled vape products.
It also filed an PHP8.5 billion tax evasion case following the raid of an illegal cigarette factory in Pampanga, and it continues to pursue illicit cigarette traders nationwide through warehouse seizures and criminal prosecutions.
The BIR’s enforcement activities also extend to the campaign against “ghost receipts,” with the DOJ recently filing eight criminal charges against a major government contractor based on the BIR’s Run After Fake Transactions (RAFT) Task Force investigation.
“These sustained efforts form part of a government campaign not only to recover lost revenues but also to protect public health and level the playing field for legitimate businesses,” Lumagui said. (PNA)
