PHILIPPINES
The Philippines government has dropped a tax evasion case against Mighty Corp, the country’s #2 cigarette manufacturer after it was sold to Japan Tobacco to raise funds for a record PHP30 billion (US$586 million) settlement.
Mighty Corp had been accused of using counterfeit tax stamps to avoid paying PHP37.88 billion (US$740,569,909.60) in taxes and threatened with criminal charges.
Later, President Rodrigo Duterte ordered that the finance department accept a settlement under which Mighty, which had 23% of the local cigarette market, would drop out of the tobacco business.
According to Justice Secretary Vitaliano Aguirre, “We could consider this case as closed. [The] government of the Philippines is PHP40 billion [US$782,016,800 richer].”The case was settled by Mighty paying with a PHP30 billion payment, and paying another PHP10 billion in taxes and penalties. Mighty had originally offered a PHP25 billion settlement.