BIR files P8.7-B tax evasion case vs vape traders

The Bureau of Internal Revenue (BIR) on Tuesday filed criminal charges before the Department of Justice (DOJ) against illicit vape businesses for allegedly evading nearly P8.7 billion in taxes.

The agency specifically made the move against vape businesses with brand names Flava, Denkat, and Flare for supposedly failing to pay taxes totaling to P8,681,028,850.

According to BIR, the criminal charges filed include unlawful possession of vape products without payment of excise tax under Section 263; tax evasion under Section 254; and failure to file excise tax returns under Section 255, all in violation of the National Internal Revenue Code of 1997, as amended.

The recovery of deficiency excise taxes and penalties which allegedly have not been paid by the vape traders amounting to almost P9 billion were also included in the charges filed.

BIR Commissioner Romeo Lumagui Jr. reminded people who wish to enter the vape industry to register with the BIR and pay proper taxes.

“This is what happens when you keep violating our tax laws,” Lumagui said in a statement.

“Expect more criminal cases to be filed against illicit vape traders. Whether your business is large or small, as long you sell illicit vape, you will be imprisoned,” he added.

Lumagui also warned that celebrities and influencers found to be working with illicit vape traders may face legal actions. — BAP, GMA Integrated News