MANILA - (UPDATE) The Department of Justice said it dismissed a P37.9-billion tax evasion complaint against cigarette manufacturer Mighty Corp as it granted the tax bureau's petition to withdraw three complaints.
Justice Chief Vitaliano Aguirre said the case against Mighty Corp was dropped because the company had paid in full its tax liability of around P40 billion.
"Under our tax laws compromising or settling is allowed. It is now considered case closed," Aguirre told reporters.
Mighty Corp, accused of faking tax stamps, had previously offered government a P25-billion settlement and said it would no longer engage in the tobacco business.
The complaint stemmed from 3 raids on Mighty's warehouses in Pampanga and Bulacan provinces and in General Santos City from March to May this year, according to the 2-page resolution dated Oct. 2.
"It behooves this office to grant the motion if only to promote the greater interest of the parties involved,” the resolution read.
President Rodrigo Duterte said in his annual address to Congress on July that he accepted Mighty's settlement offer, among the largest such agreements in history.
Named as respondents in the tax complaint were Mighty president Edilberto P. Adan, executive vice president Oscar P. Barrientos, assistant corporate secretary Alexander D. Wongchuking, and treasurer Ernesto A. Victa.