The Bureau of Internal Revenue (BIR) has elevated two tax evasion cases, totaling ₱796.95 million, to the Court of Tax Appeals (CTA) after the Department of Justice (DOJ) ruled in government’s favor.

In a statement on Monday, July 7, BIR Commissioner Romeo D. Lumagui, Jr. noted that criminal cases were filed before the CTA on July 1, 2025, stemming from large-scale illicit cigarette operations.

One case targets the lessee of a warehouse in Brgy. Ugong, Valenzuela City, for the unlawful possession of excisable goods. The BIR's largest operation against illicit cigarettes in 2024, conducted in early November, uncovered 600 master cases of untaxed cigarettes at the facility.

The BIR is prosecuting this case under Section 263 of the National Internal Revenue Code of 1997, as amended, which penalizes the possession or removal of articles subject to excise tax without payment. The total tax liability for this case is estimated at ₱200.7 million.

Another case, involving a larger tax deficiency of ₱596.2 million, has been filed before the CTA against a Chinese national believed to be operating an illegal cigarette manufacturing facility in Brgy. Moranquillo, San Rafael, Bulacan.

According to the BIR, the individual faces charges for multiple violations of the Tax Code, including Section 260 (Unlawful possession of cigarette tipping paper or filter tips), Section 263 (Unlawful possession of excisable articles without tax payment), and Section 265-B (Illegal possession of manufacturing equipment for cigarette production).

These charges are based on the 7,844 master cases of illicit cigarettes and manufacturing paraphernalia discovered during the same joint simultaneous raid operation. Separately, the Criminal Investigation and Detection Group (CIDG) also filed a human trafficking case after rescuing 155 trafficked workers from the premises.

Lumagui reiterated, “155 Filipinos were victims of human trafficking perpetrated by illicit cigarette businessmen. Not only were they forced to work for an illegal enterprise, they were also working under unsanitary and unhygienic conditions. We will raid warehouses, seize illicit products and equipment, file criminal charges, and ensure arrests. No one, even the biggest operators, escapes the law.”

The BIR continues to encourage public support in reporting activities related to the sale or manufacture of untaxed cigarettes.

Lumagui stated, “We assure the public that all BIR operations against illicit trade of cigarettes and vape will result into the filing of criminal cases against those involved. We will raid your warehouses. We will file criminal cases. You will be arrested.”