5 Chinese indicted for P5.7 billion tax evasion

MANILA, Philippines — The Department of Justice (DOJ) has filed charges of tax evasion against five Chinese nationals who allegedly failed to pay P5.7 billion in taxes over the illegal trade of cigarettes.

The DOJ filed the case before the Court of Tax Appeals (CTA), based on the complaint of the Bureau of Internal Revenue (BIR) and the police Criminal Investigation and Detection Group.

The case stemmed from the seizure of 21,000 master cases of illegal cigarettes in six locations in Valenzuela and Bulacan last year.

“Warrants of arrest against the Chinese nationals are expected to be issued by the CTA,” the DOJ said.

According to the DOJ, the foreigners’ involvement in the illegal trade of cigarettes was discovered during a joint operation in Valenzuela and Bulacan.

“The evidence submitted by the BIR showed that the tax liability of the Chinese nationals amounted to more than P5.76 billion,” the DOJ said.

Justice Secretary Jesus Crispin Remulla said the filing of the charges shows that “crimes undermining our economy can be defeated as long as government agencies join their resources and intensify efforts against tax cheats.”