Mighty Corp.’s tax evasion cases could be due to business rivalry – Lawyer

MANILA — Mighty Corporation owner Alexander Wongchuking submitted Thursday his counter affidavit to the Department of Justice (DOJ).

This was a response to the second tax evasion complaint against his company in relation to the alleged tax liabilities amounting to almost P27-billion.

The complaint was filed by the Bureau of Internal Revenue (BIR) after the discovery of fake tax stamps on Mighty Cigarettes inside the company’s warehouse in San Ildefonso, Bulacan last March.

But a lawyer for the company says, the search was illegal.

“There was no legal justification for it. The evidence that was obtained was questionable,” Mighty Corporation lawyer Atty. Abraham Espejo said.

He added that they are ready to face the complaints and prove they are innocent of the charges.

They also doubt the motive behind the filing of the cases.

“It’s hard to speak but this could be due to business rivalry,” Espejo said.

The BIR refused to say anything about the matter.

Mighty Corporation is facing three tax complaints arising from separate raids of its warehouses in San Simon, Pampanga, San Ildefonso, Bulacan and General Santos City. – Roderic Mendoza | UNTV News and Rescue

 
Source: https://www.untvweb.com/news/mighty-corp-s-tax-evasion-cases-due-business-rivalry-lawyer/

Mighty Corporation pleads innocence before Doj on tax evasion case

A LAWYER of embattled local cigarette firm Mighty Corp. maintained his clients’ innocence in the P26.93-billion tax-evasion complaint before state prosecutors on Thursday.

 
The Department of Justice (DoJ) yesterday held its first preliminary investigation on the second of three tax evasion raps filed by the Bureau of Internal Revenue (BIR) against Mighty Corp.

Members of the media were barred from covering the hearing, but Abraham Espejo, representing Mighty Corp., told reporters outside the hearing: “They have not committed any crime that they are being pilloried. Give us a chance to be heard. That’s my request.”

“I assure you that my clients will be able to prove that all of these accusations are not true,” Mr. Espejo added.

Mr. Espejo represents the four respondents in the case, namely: Mighty Corp. President Edilberto P. Adan, Executive Vice-President Oscar P. Barrientos, Vice-President for External Affairs and Assistant Corporate Secretary Alexander D. Wongchuking, and Treasurer Ernesto A. Victa.

The lawyer said that their camp filed a counter-affidavit with annexes reaching to “thousand” of pages. “Kaya kami nagfa-file ng (That is why we are filing the) counter-affidavit, we want due process. We do not want kangaroo-style proceedings here. I reiterate, we will fight,” Mr. Espejo also said.

Asked how he thinks the case is proceeding, he replied that the case is “doubtful, questionable, as a student of constitutional law, you will know the effect if evidence is obtained illegally, it’s inadmissible. Not only is the evidence inadmissible, it’s also questionable.”

He added that the case “could be due to business rivalry,” but did not elaborate.

The BIR first filed the tax evasion case worth P9.56 billion against Mighty Corp. on March 22. The BIR, in a statement released upon filing, said: “[t]he respondent corporation was the subject of an on-the-spot surveillance operation of untaxed cigarette products conducted [last March 1]… in San Simon Industrial Park (SSIP), San Isidro, Pampanga” and that random checks on 10 master cases of cigarettes in four warehouses in the economic zone leased by Mighty showed that internal revenue stamps affixed on the cigarette packs “were fake.”

Subsequent inventory of all cigarette packs in the warehouses concerned showed that Mighty stored there 66,281 master cases with 33,140,500 cigarette packs.

“The investigation further showed that 87.5% of the said packs bore fake internal revenue stamps,” the BIR said.

“The stamps are fake since they did not contain one of the multi-layered security features of a valid internal revenue stamp,” the BIR added.

The said case was deemed submitted for resolution last May 30.

Mighty Corp. is also facing a third complaint from the BIR, worth P1.39 billion. The three complaints bring the total alleged tax liabilities of Mighty Corp. to P37.88 billion — the largest tax evasion case so far under the administration of President Rodrigo R. Duterte.

The case is handled by a three-man panel of state prosecutors led by Senior Assistant State Prosecutor Sebastian Caponong, Jr. The other members are Assistant State Prosecutors Ma. Lourdes Uy and Mary Ann Parong. — Kristine Joy V. Patag

 
http://www.bworldonline.com/content.php?section=Nation&title=mighty-corp.-pleads-innocence-before-doj&id=146480

Mighty Corp execs seek junking of tax evasion case

Officials of Mighty Corp. facing P9.56-billion tax evasion charges have sought the dismissal of the case filed against them by the Bureau of Internal Revenue (BIR) at the Department of Justice (DoJ).

Their plea is contained in a 106-page counter-affidavit submitted before the DoJ.

 

Mighty’s executive vice president, retired judge Oscar Barrientos, vice president for external affairs and assistant corporate secretary, Alexander Wongchuking, and treasurer, Ernesto Victa, said there is no probable cause for charges of tax evasion to be filed against them.

“No probable cause exists to indict us for violations of NIRC (National Internal Revenue Code). Assuming there is probable cause for our indictment (which is denied), no grounds exist or allegations made to hold us criminally liable as corporate officers under Section 253 of the NIRC for acts which are yet to be verified and confirmed after appropriate inspection has been completed,” they maintained.

The case stemmed from the alleged failure of Mighty Corp. to pay excise taxes as supposedly discovered by the BIR and Bureau of Customs (BoC) in raids conducted on Mighty’s four warehouses in Pampanga in March.

In its complaint, the BIR accused Mighty of using fake tax stamps in its cigarette packs.

The respondents also asserted that there is no basis for the allegations of the BIR that 87.5 percent of the more than 33 million cigarette packs bore fake tax stamps because only 1 percent of the total master boxes in their warehouses in San Simon, Pampanga was inspected.

“So, any extrapolation made on the character and valuation of those goods violate Supreme Court’s 2016 decision in Pacquiao vs CTA and related cases where factual allegations regarding tax assessments must be presented on existing verifiable facts, not speculation,” the Mighty officials said.

They also lamented the alleged lack or prior tax assessment for supposed tax deficiency before the charges were filed by the BIR.

The Mighty officials argued that “the stamp verification process using Mobile Verification Devices under Revenue Regulation No. (RR) 7-2014 and Revenue Memorandum Order No. (RMO) 33-2016 are either incomplete or unreliable and therefore, void for purposes of their use as evidence in any proceedings.”

They added that since the alleged smuggled or counterfeit cigarette were already seized and detained by the BOC, the body or object of the alleged crime does not exist.

 

Source: http://www.manilatimes.net/mighty-execs-seek-junking-tax-evasion-raps/333577/

Mighty Corporation aids Southern Luzon through its CSR projects

Mighty Corp. shows its support for the local farmers up north.

In line with their recent expansion, Mighty developed various Corporate Social Responsibility projects to aid millions of people nationwide.

The company also hopes that the implementation of these projects will help the economy and the country grow.

CSR projects that were implemented in North Luzon:

  1. Increased tobacco purchase – Mighty Corp. substantially increased their tobacco purchase in order to raise the income of local farmers significantly. This will also help Mighty compete in the tobacco industry on an equal playing field.
  2. Supports the use of organic Pesticides – Mighty claimed that this move will help reduce the reliance of millions of local farmers on the use of chemical-based pesticides. Mighty said that this will not only help the environment, but will also help the farmers increase their income.
  3. Scholarship Grants for the farmers’ children – Honoring their patriarch’s memory, Mighty’s foundation granted scholarships and educational assistance to children of local tobacco farmers.
  4. Provided tobacco dust to Fish Pond owners – Mighty also helped local fish pond owners fight predators that infest their ponds. The company provided them with tobacco dust, a fish pond conditioner, to help decrease the number of predators in their ponds.
  1. Absorbed Low-grade leaves – Mighty also purchased low-grade leaves from local farmers at very good prices. This helped the local farmers increase their income while also assuring them that their crops have a place on the local market.

Mighty Corp Secrets to Success

Each one of us has different secrets in order to achieve success. Mighty Corp. is here to share theirs.

Being an underdog for many years, the oldest Filipino-owned cigarette manufacturer slowly emerged from the bottom of the industry and became one of the biggest players in the tobacco industry today.

According to the president of Mighty Corporation there are a couple of traits that each person should have in order to achieve success.

One should learn how to anticipate future trends and adjust, persevere, decide succession based on meritocracy, work hard, innovate, focus, preserve harmony, have faith, maintain people, believe in filial piety, believe in philanthropy, show humility, be loyal, and believe in destiny.

Working on these traits will help you improve your physical, mental, and emotional state. These will help shape you as a whole and improve your personality overall.

These traits will help you develop a proper mindset that can withstand problems that you are going to face. These will teach you to work hard, persevere, and focus, which are the fundamentals of a successful mindset.

Having a proper mindset will help you focus on your goal and help you to continuously improve yourself.

However, a successful man is not only about being successful in the field of business, but it’s also establishing a healthy relationship with the people around you.

These traits will help you improve your attitude towards every situation and every person you encounter.

Showing the proper attitude towards everything will not only help you ease your stress, but will also make people comfortable with you, making the work place a healthy environment to work on.

Improving one’s mindset and attitude are the first steps towards success. Once you master these traits, you will be successful in whatever you do.