Bacolod property owner cleared in tax evasion raps

Manila: The Court of Tax Appeals (CTA) has acquitted the owner of two properties in Bacolod City which yielded unregistered cigarettes and cigarette manufacturing equipment during 2017 raid.

The tax court decision dated Sept. 23 cleared Alman Gayatin, the registered owner of Alter Trade and Villa Socorro in Bacolod, which was leased by Chinese individuals led by a certain Jimmy Chua to put out cigarettes illegally.

Among the items seized from the premises were a cigarette maker machine, 783 cases each containing 50 reams of 10 packs of cigarette, 26 cases of loose cigarette finished products, and 2.5 million pieces of counterfeit Bureau of Internal Revenue (BIR) stamps.

The BIR had said the tax evasion involved at least PHP18.2 million in excise taxes.

The court, however, said the prosecution failed to prove that Gayatin, as registered owner, had actual control over the unregistered tobacco products.

‘(T)he existence of a valid and enforceable contract of lease between accused Gayatin and Jimmy Chua cann
ot be disregarded,’ the court said.

The CTA said ‘the prosecution proferred no evidence pointing to the accused (Gayatin) as having either actual or constructive possession over the excisable goods.’

The court also ordered the case archived pending the arrest of the other accused, Jimmy Chua, Andy Chua and an unidentified John Doe.

Source: Philippines News agency