Five Chinese nationals have been charged before the Court of Tax Appeals (CTA) for failure to pay more than P5 billion in taxes for large stocks of cigarettes seized from several locations in Valenzuela City last year, the Department of Justice (DOJ) said on Tuesday, March 25.
In a statement, the DOJ said the charges against the accused were filed by the Valenzuela City Office of the City Prosecutor after conducting a preliminary investigation of the complaints filed by the Bureau of Internal Revenue (BIR) and the Philippine National Police-Criminal Investigation and Detection Group (PNP-CIDG).
“In light of this development, Warrants of Arrest against the 5 accused Chinese nationals are expected to be issued in the soonest possible time,” said the DOJ.
Charge sheets released by the DOJ showed that two separate cases were filed before the CTA for unlawful possession of articles subject to excise tax without payment under Section 263 of Republic Act (RA) 8424, the National Internal Revenue Code of 1997, as amended.
In one case, it said that accused Zizhan Pan, Zili Pan, and Ziquing were charged with tax evasion amounting to P5,532,080,400 in connection with 14,255 master cases of cigarettes found in Apolonia Street in Mapulang Lupa, Valenzuela City.
In another case, it also said that accused Yan Liang Hu and Rock Gara Yu were charged with tax evasion amounting to P232,681,050 for 7,386 master cases of cigarettes discovered in Tatalon Street in Barangay Ugong, Valenzuela City.
“The overwhelming pieces of evidence submitted by the BIR show that the tax liability of the accused Chinese nationals amounted to P5,764,761,450 based on the 21,000 master cases of illicit cigarettes seized during the aforementioned operations,” the DOJ said.
Justice Secretary Jesus Crispin C. Remulla said the filing of the charges shows “crimes undermining our economy can be defeated as long as the responsible government agencies join their resources and intensify their efforts.”
Remulla then encouraged the BIR and other law enforcement agencies “ to continue their fight on other notable financial crimes that severely affect the growth of our country and committed that the Department of Justice will always support their endeavors in accordance with law.”