BIR seizes untaxed juice, powdered drinks in Metro Manila, Cavite

THE Bureau of Internal Revenue (BIR) seized a large amount of untaxed juice and powdered tea drinks from three major grocery stores and their manufacturer in Metro Manila and Cavite.

The seizure was part of a two-day crackdown on untaxed goods being implemented by the BIR.

According to the BIR’s large taxpayers service (LTS), under Assistant Commissioner Jethro Sabariaga, the agency discovered untaxed SM Bonus Apple Juice and SM Bonus Orange Drinks at a shopping mall in Quezon City

A separate operation the day before led to the seizure of S&R Lemon Tea and S&R Raspberry Tea from a shopping store in Taguig City, following a raid on Vermirich Foods Corporation in Carmona, Cavite, the manufacturer of these products, the BIR added.

In a statement, BIR Commissioner Romeo Lumagui Jr. said Vermirich did not register the business, file returns, and pay taxes since 2018, resulting in a loss of P800 million in excise and value-added taxes for the government.

The BIR chief explained that such non-compliance violated several sections of the Tax Code.

Lumagui said the grocery stores, acting as distributors of the sweetened and powdered drinks, were implicated for their alleged failure to exercise due diligence in verifying Vermirich’s compliance with tax obligations.

The distributors also violated various provisions of the Tax Code and Revenue Regulations No. 20-2018 since they possessed items subject to excise tax, the BIR commissioner said.