Mighty tax deal legal – Panelo

TWO Malacañang officials were effectively rebuffed by the stand of Chief Presidential Legal Counsel (CPLC) Salvador Panelo that compromises in tax cases like that of Mighty Corporation violate no law and are therefore legal.

Panelo said it is clear that the law allows compromises in tax cases and President Rodrigo Duterte would not violate the law.

 

According to Panelo, Finance Secretary Sonny Dominguez and Bureau of Internal Revenue (BIR) Commissioner Cesar Dulay should remember that President Duterte is a lawyer of high caliber and knows the law.

“The law allows compromises on tax cases. Always remember PRRD is a lawyer of caliber, he knows his law,” Panelo said.

Panelo also made it clear that a tax case must first reach the court before any compromise can be discussed.

Panelo also believes that Dominguez and Dulay can change their position and agree to a compromise with Mighty Corp. if the President presses the matter.

“But first the case should be filed in the court before any compromise is discussed. But the President is correct, compromise (in tax cases) is allowed by law, it is legal,” Panelo stressed.

Duterte earlier said the reason why he wants Dominguez and Dulay to agree to a compromise deal as long as it is reasonable rather than go through the lengthy process of litigation and running after tax evaders.

President Duterte recently said he planned to accept a P3-billion compromise agreement with Mighty Corp., which faces a P9.5-billion tax evasion case at the Department of Justice.

The President fears it would take a decade to fight tax cases in court instead of entering into a compromise and already benefit from the payment the government would get.

“No. Because compromise is allowed by law. And you have to remember that the President is a lawyer,” said Sec. Panelo when asked if the President would violate the law if he pushed for compromises in tax cases like that with Mighty Corporation.

Mighty Corps’ Secrets to Success

Many people strive for success yet they don’t know where to start. Many people aim high yet they don’t know how to get there. Luckily, one of the most successful companies in the local tobacco industry is here to give those people the ways and practices of a successful company.

Mighty Corp. has been part of the local tobacco industry for a very long time. It is labeled as one of the oldest Filipino-owned cigarette manufacturer and has been known for its steady climb towards the top of the ladder known as the tobacco industry. The company has increased its market share from 3 percent in 2012 to 20 percent in 2013.

So how did they do it?

In an interview with The Philippine Star, Alex Wongchuking, President of Mighty Corp., shares his secrets towards the company’s overflowing success.

The Mindset

Alex shares practical ways and mindsets that a person seeking success should have. One of these is anticipate future trends and adjust. When he was an assistant sales manager of their company from 1983 to 1985, he noticed changing fashion in local smoking, as well as how the new tax system was killing the local cigarette segment. So the company decided to adjust and adapt. They developed Virginia-tobacco type cigarettes in 1985, and changed the company and brand name to “Mighty.”

Next is perseverance. Alex shared attaining success is much like courting a woman, you need a high-degree of patience and perseverance.

“There should be a high degree of patience and perseverance. It is like courting a girl, a lot of patience is required.”

There is no substitute for hard work. In his interview, he said that he and his siblings go beyond the eight-hour-per-day shift. Even going as far as to working every Saturdays and Sundays.

Next is innovation. The company always seek to innovate and develop new ways to improve the quality of their product. One of these is by modernizing their manufacturing equipment for improved quality and increased yield production.

Last is focus. Alex believes that maintaining a high degree of focus is another factor in achieving success.

The Attitude

Alex also shared the proper attitude a successful man has or should have. One of these is preservation. It is important to preserve harmony within your family, especially when it’s a family business.

“If you have family harmony and you can work well together with family members and other people.”

He also shared the ways of determining the successor. He touched on how the selection of the successor should be the one who is most qualified. Even the selection of other choices like executives and managers should be based on merits.

Another key factor is faith. As a devotee of Our Lady of Piat, the Virgin Mary shrine in Cagayan province, Wongchuking said that faith is needed in order to run a company with a proper mindset.

“Faith is important to business or the profession, because faith gives you spiritual development and direction. Meaning, faith keeps you cool all the time, whatever happens to our business, profession or life.”

Alex also said that treating your people right will help establish a stronger bond and will strengthen teamwork.

A specific practice that the Wongchuking family does is filial piety. This is total obedience to parents and family elders. Aside from their patriarch, the company puts their trust on the guidance of their 87-year-old mother, Nelia Dy Wongchuking.

Next is Philanthropy. Since the family’s patriarch had no chance to finish high school and college, the company honors his memory by supporting educational scholarships for three sets of beneficiaries: the kids of company employees, the kids of non-employees who are deserving students and need help, and also for children of rural tobacco farmers who want to study agriculture in college.

He also believes in humility.  “There should be an element of self-denial,” he said.

He also stated that being loyal and faithful to your spouse is another factor to achieve success.

“Having only one family is crucial for genuine success, because if one has too many families, that is a sure recipe for chaos and for nonstop family quarrels, “he said.

When asked about “destiny”, Alex responded, “Destiny is key to success, just like in the Bible. When God called Jeremiah to become a prophet, he said ‘No, I’m a shy person.’ But God said to him, ‘Before you were born, you were already destined to become a prophet.’ It became true, Jeremiah became a good prophet, naging madaldal (he became eloquent). Read the Bible, Jeremiah Chapter 1:4.”

Case filed to fake Mighty Corp cigarettes sellers in Cebu

Eleven boxes of fake cigarettes sold in barangays Taboan and Ermita in Cebu City were confiscated by agents of the National Bureau of Investigation (NBI-7).

Three suspects identified as Carissaa Mae Juanico, Glenn Squib and Kevin Takiao were arrested in a buy bust operation last Feb. 24.

The three were charged with violation of Republic Act 8293 or the Trademark Infringement and Unfair Competition law for selling fake Mighty cigarettes.

The case was filed before Branch 11 of the Cebu City Regional Trial court. RTC Judge Ramon Daomilaas recommended P40,000 bail for each suspect.

NBI-7 acted based on a complaint filed by Mighty Corp. manufacturer of Mighty cigarette brands.

Smuggled fake Mighty Corp cigarettes sold in Cebu

Eleven boxes of fake cigarettes sold in barangays Taboan and Ermita in Cebu City were confiscated by agents of the National Bureau of Investigation (NBI-7).

Three suspects identified as Carissaa Mae Juanico, Glenn Squib and Kevin Takiao were arrested in a buy bust operation last Feb. 24.

The three were charged with violation of Republic Act 8293 or the Trademark Infringement and Unfair Competition law for selling fake Mighty cigarettes.

The case was filed before Branch 11 of the Cebu City Regional Trial court. RTC Judge Ramon Daomilaas recommended P40,000 bail for each suspect.

NBI-7 acted based on a complaint filed by Mighty Corp. manufacturer of Mighty cigarette brands.

Market share of Bulacan based Mighty Corp increase for the year

Bulacan-based Mighty Corp. said Thursday it expects to widen its market share in the tobacco industry, as it continues to supply quality but cheaper alternatives to expensive cigarette brands.

Mighty executive vice-president Oscar Barrientos said the increase in market share was due to the shift of the local market from premium brands to cheaper alternatives.

“Mighty’s market share is rising because of our very competitive price as well as quality of our cigarettes,” Barrientos said.

“Consumers are shifting from premium to low-premium brands after the new excise tax law,” he said.

Barrientos said Mighty’s market share grew from a range of 3 to 5 percent in 2012 to a range of 10 percent to 12 percent in 2013.

“For this year, we’re targeting to expand it by two percentage points, or to 12 percent to 14 percent,” Barrientos said.

He said the size of the tobacco market was more than 100 billion sticks annually and was continuously growing despite the increase in cigarette prices.

Barrientos said the company was now selling the Mighty brand for P26 to P27 a pack, Marvel brand for P25 to P26 a pack, which were both higher by P5 from last year’s retail price.

He said the adjustment reflected the P5 increase in excise tax rate this year. He said some retailers were still selling Mighty brand at P23 per pack and Marvel brand P18.4 per pack.