DOJ files P5.7-B tax evasion case vs 5 Chinese nationals

Department of Justice | PHOTO: INQUIRER.net / Noy Morcoso

MANILA, Philippines — The Department of Justice (DOJ) has filed a P5.7-billion tax evasion case against five Chinese nationals involved in the sale of illicit cigarettes in Valenzuela and Bulacan.

In a statement on Tuesday, the DOJ said the five Chinese nationals were found to be involved in the sale of illegal cigarettes seized during police operations at six different locations in Valenzuela and Bulacan on Nov. 6 and 7, 2024.

The Office of the City Prosecutor of Valenzuela City then found “reasonable certainty of conviction” from the evidence submitted by the Bureau of Internal Revenue (BIR) on their complaint on Feb. 7.

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“The overwhelming pieces of evidence submitted by the BIR show that the tax liability of the accused Chinese nationals amounted to P5,764,761,450 based on the 21,000 master cases of illicit cigarettes seized during the aforementioned operations,” the DOJ said.

The DOJ said the cases were then filed before the Court of Tax Appeals on March 13 against the Chinese nationals for a violation of Section 258 (unlawful pursuit of business) concerning Section 236 and for a violation of Section 263 (unlawful possession of articles subject to excise tax without payment of the tax) under the National Internal Revenue Code of 1997.

It also added that these warrants of arrest against the five Chinese nationals are already expected to be issued soon.