Philippine Tax Bureau Wins Lawsuit Against "Tap Fog" Seller, to Receive 21.4 Million USD

Regulations by 2FIRSTS.ai
Feb.27.2024
Philippine Tax Bureau Wins Lawsuit Against "Tap Fog" Seller, to Receive 21.4 Million USD
The Philippine BIR wins tax evasion lawsuit against "Tap Fog" e-cigarette brand, estimated to receive 12 billion pesos in civil liability.

According to a report by BusinessMirror on February 26, the Bureau of Internal Revenue (BIR) in the Philippines announced on Monday that it has won a tax evasion case against the seller of the e-cigarette brand "Tap Fog." The estimated civil liability amount is approximately 1.2 billion pesos (21,388,800 US dollars).

 

According to a statement from the tax authorities, after conducting a series of surprise inspections in November 2022, the agency filed tax evasion complaints against Tap Fog brand sellers and four other e-cigarette traders in December 2022.

 

The statement also indicated that arrest warrants have been issued by the Philippine Tax Appeals Court and the Urban Trial Court for the masterminds behind the "Tap Fog" brand.

 

In addition, the statement quoted Romeo D. Lumagui Jr., Commissioner of the Bureau of Internal Revenue (BIR), as saying, "This proves our commitment to filing cases after conducting raid operations." The BIR did not disclose the identity of the trader.

 

The official also added that the Bureau of Internal Revenue (BIR) is closely monitoring the e-cigarette industry and reminding e-cigarette retailers to comply with registration and tax requirements under the law. The BIR's statement did not disclose the names of the sellers of the "Tap Fog" brand.

 

The Bureau of Internal Revenue (BIR) has charged "Tap Fog" and its cohorts, including some individuals whose names have not been disclosed, with violating sections 263-A ("selling heated tobacco products and vaporized products at prices lower than the comprehensive consumption tax and value-added tax in the Philippines") and 265 ("selling or offering for sale items with false or counterfeit tax stamps attached") of the Philippine tax code, and failing to pay the corresponding taxes. The BIR has filed a lawsuit against "Tap Fog" for tax evasion and failure to file tax returns.

 

Previously, Commissioner Caesar Dulay pledged at a press conference in January that the Bureau of Internal Revenue (BIR) would continue to take aggressive action against illegal trading of e-cigarettes and vaping products. "We will continue doing what we have always done - fearless and proactive enforcement activities. We will still go after those engaging in blatant and illegal activities, such as illegal trading of cigarettes and e-cigarette products."

 

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