Filipino-owned manufacturer of cigarettes, Mighty Corp was being dragged with several issues for the past few months. As the rival company, PMFTC accused Mighty over the underpaid excise taxes for sales registered last year. The company paid P8.2 billion in excise taxes last year from thP500 million it paid in 2012.
According to Mighty's executive vice president and spokesperson Oscar Barrientos said: “Allegations that Mighty Corp. did not pay the correct taxes for 2013 are grossly inaccurate and downright ridiculous. Our critics had most likely misunderstood the data from the Bureau of Internal Revenue,”
Barrientos said that the said amount was based on an average market share of 13.7 percent for the 12 months of last year.“The taxes we paid for the year 2013 reflects the jump in our market share and our fair share in the increased taxes on ‘sin’ products last year,” he added.
He also said that the company did not have a 20 percent market share for the entire year of 2013. “We closed the year with a 22.5 percent market share. We started 2013 with three percent,”he explained.
“We slowly but surely grew our market share over the past 12 months on the strength of our production efficiencies and a sound national sales distribution strategy,” he added.“We did not have a 20 percent year-round market share average, as what are our critics have erroneously and maliciously implied, when they accused us of tax evasion,” he said.
The malicious allegations against them when the competitor pinpointed Mighty paid P4 billion in excise taxes.“Critics charged that Mighty Corp. should have paid P12 billion instead of P8 billion since its 20 percent market share was supposedly equivalent to 20 billion sticks sold,” the company said. “The first time we hit 20 percent market share was in December 2013. Our critics computed excise tax dues on 20 percent market share year-round. Of course there will be a discrepancy. They give new meaning to the term ‘creative accounting.’ The truth is, we paid the right taxes,” Barrientos said.
So what's the point of creating issues against Mighty Corporation?
According to Mighty's executive vice president and spokesperson Oscar Barrientos said: “Allegations that Mighty Corp. did not pay the correct taxes for 2013 are grossly inaccurate and downright ridiculous. Our critics had most likely misunderstood the data from the Bureau of Internal Revenue,”
Barrientos said that the said amount was based on an average market share of 13.7 percent for the 12 months of last year.“The taxes we paid for the year 2013 reflects the jump in our market share and our fair share in the increased taxes on ‘sin’ products last year,” he added.
He also said that the company did not have a 20 percent market share for the entire year of 2013. “We closed the year with a 22.5 percent market share. We started 2013 with three percent,”he explained.
“We slowly but surely grew our market share over the past 12 months on the strength of our production efficiencies and a sound national sales distribution strategy,” he added.“We did not have a 20 percent year-round market share average, as what are our critics have erroneously and maliciously implied, when they accused us of tax evasion,” he said.
The malicious allegations against them when the competitor pinpointed Mighty paid P4 billion in excise taxes.“Critics charged that Mighty Corp. should have paid P12 billion instead of P8 billion since its 20 percent market share was supposedly equivalent to 20 billion sticks sold,” the company said. “The first time we hit 20 percent market share was in December 2013. Our critics computed excise tax dues on 20 percent market share year-round. Of course there will be a discrepancy. They give new meaning to the term ‘creative accounting.’ The truth is, we paid the right taxes,” Barrientos said.
So what's the point of creating issues against Mighty Corporation?