A businessman who allegedly owns an illegal cigarette factory in Pangasinan was sued by the Bureau of Internal Revenue (BIR) today for tax evasion.
The BIR filed the case at the Department of Justice (DOJ) against the factory owner, who was identified by Manila Bulletin as Danilo De Quinto Calugay.
Calugay allegedly tried to hide his cigarette factory in the village of Portic in Bugallon town by using a piggery as a front, reported The Philippine Daily Inquirer.
Like, he literally used it as a front because the factory was located behind the piggery. It was hidden further from public view by the mango trees surrounding it.
The factory was so well-hidden from the public that even village officials allegedly didn’t know that something fishy was going on behind the piggery.
These officials allegedly only learned about the existence of the factory when it was raided by the BIR and the National Bureau of Investigation (NBI) on Nov. 28. The authorities discovered 30 workers producing cigarettes which were imprinted with fake brand labels. What made matters worse was that five of these workers were said to be Chinese nationals holding tourists visas, reported Manila Standard.
Calugay was identified as its owner because he was the one who applied for a village permit to operate the piggery.
At the factory, the BIR and NBI found fake BIR tax stamps, bales of filters, packing machines, packs of foil, and cigarette paper. The government officials estimated that the factory made 20,000 sticks of cigarettes a day.
The government estimated that Calugay failed to pay taxes amounting to PHP3.4 billion (US$65.140 million), reported ABS-CBN News. He’s being sued for non-payment of these taxes which, if he were convicted, could land him behind bars for as long as four years.
