BIR raids another large-scale Illicit Cigarette Factory in Cabanatuan with 636M Tax Liability

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Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reports another win in his war against illicit trade with a successful raid of a clandestine factory that manufactures illicit cigarettes. Said factory is located in Cabanatuan City. 

An estimate of Php 636,935,703.54 of unpaid taxes and penalties will be assessed against those behind this illicit cigarette factory. Commissioner Lumagui also reports that when the BIR raided the factory, together with the National Bureau of Investigation (NBI), they discovered that the operations of the factory was done at the ground floor of what it seems to be a rest house and that truck containers used as storage facilities were hidden under camouflage covers. Also discovered during the raid were other facilities such as a bunker and a firing range. Fifteen (15) Chinese nationals were arrested during the raid. 

"The BIR will continue to raid large-scale illicit cigarette warehouses, traders, and manufacturers. This 636M raid in Cabanatuan City of an illicit cigarette factory shows our commitment to a fair and equal marketplace in our country. Expect more raids" Commissioner Lumagui stated. 

In a clear attempt to hide itself from detection by the BIR, the rest house that was used as a factory was situated behind a gasoline station. The BIR and the NBI had to enter two (2) separate gates from the gasoline station before reaching the factory. Inside the factory, they discovered illicit cigarettes, machines, fake tax stamps, raw tobacco and other materials used in  manufacturing of cigarettes. The place was also unsanitary because the raw tobacco being used in the manufacturing of the illicit cigarettes was merely placed on the floor where dirt and dust accumulated due to the unhygienic standards of the factory. 

The manufacturers of  illicit cigarettes that were raided in Cabanatuan City are now being investigated for violation of the National Internal Revenue Code (NIRC). This includes violation of Section 263. Unlawful Possession or Removal of Articles Subject to Excise Tax Without Payment of the Tax, Section 265-B. Violations Committed by Manufacturers, Importers, Indentors, and Wholesalers of Any Apparatus or Mechanical Contrivance Specially for the Manufacture of Articles Subject to Excise Tax and Importers, Indentors, Manufacturers or Sellers of Cigarette Paper in Bobbins, Cigarette Tipping Paper or Cigarette Filter Tips, Section 260. Unlawful Possession of Cigarette Paper in Bobbins or Rolls, Etc., Section 255. Failure to File Return, Supply Correct and Accurate Information, Pay Tax Withhold and Remit Tax and Refund Excess Taxes Withheld on Compensation, Section 254. Attempt to Evade or Defeat Tax, Section 145. Cigars and Cigarettes, and Section 236. Registration Requirements of the NIRC.

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