SBMA shutters cigarette maker for tax dodging
Posted 5 years ago
SUBIC Bay Freeport—The government campaign to flush out illegal operations in this free port gained headway with the closure of a cigarette manufacturer here for tax evasion.
Subic Bay Metropolitan Authority Chairman and Administrator Wilma T. Eisma said SBMA padlocked Qiu Tobacco Industrial Co. Ltd. Corp. following an inspection of its facilities which yielded cigarette products without excise tax stamps.
Eisma and Bureau of Internal Revenue (BIR) Region 3 Director Ed Tolentino led a joint SBMA-BIR team on Friday that swooped down on six cigarette manufacturers at the Gateway Park here to flush out those involved in the circulation of untaxed and fake cigarette products in the country.
Inspection showed that Qiu Tobacco, which produces cigarette brands like Belmont, Navy and D&B, did not have excise tax stamps on their soft packs.
Upon investigation by the SBMA-BIR team, a Chinese national identified as caretaker of the Qiu facility said the cigarette brands were sold outside the country.
However, the inspectors noted that the cigarettes had markings indicating they were intended for the Philippine market.
Tolentino said this was a violation of Section 263 of the National Internal Revenue Code, which
prohibits the possession or removal of articles subject to excise tax without payment of tax.
The BIR official added that the lack of stamps meant the firm was not paying the proper tax for each pack that was manufactured and sold. The excise tax is a duty that must be levied on manufactured goods at the moment of manufacture, rather than at sale.
Eisma said that the Qiu representative also was not able to present a copy of the firm’s Certificate of Registration and Tax Exemption (CRTE), which the SBMA requires to be displayed in company premises.
A check with the SBMA Business and Investment Group indicated that Qiu Tobacco was issued a CRTE on December 5, 2018. The permit was good until May 31, 2021.
Eisma said, however, that because of its failure to pay excise taxes, the company will be closed until further notice from the BIR.
The SBMA chief also warned business locators here to pay the proper taxes to ensure smooth operations in the free port.
Last week, the BIR also shut down the facilities of the Philippine offshore gaming operator Great Empire Gaming and Amusement Corp. here, along with its other offices in Quezon City, for tax evasion.
Eisma added that if a company complies with the law and the rules and regulations of the agency, the SBMA will protect that company. “If not, we will prosecute to the full extent of the law,” Eisma said.
Source : Business Mirror
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