The Finance Department is set to receive an initial payment of P3.5 billion from local cigarette manufacturer Mighty Corp., representing a portion of its tax liabilities to the government, Secretary Carlos Dominguez III said Thursday. The amount would actually come from Japan Tobacco International, which agreed to buy Mighty Corp. and its assets for P45 billion. Dominguez said the acceptance of the money would not mean the department was agreeing to the Mighty’s settlement offer of its tax liabilities. Mighty Corp. in a letter to BIR commissioner Caesar Dulay on July 10 offered to settle its tax liabilities for P25 billion by July 20. The amount represents the deficiency excise taxes (P3.5 billion) and the internal revenue taxes of the company and its shareholders (P21.5 billion).

Source: The Standard July 20, 2017 13:41 UTC