Manila: The Court of Tax Appeals (CTA) has acquitted the owner of two properties in Bacolod City involved in a 2017 raid that uncovered unregistered cigarettes and cigarette manufacturing equipment. The court ruled in favor of Alman Gayatin, the registered owner of Alter Trade and Villa Socorro, properties leased by Chinese nationals who allegedly used the premises to produce illegal cigarettes.
According to Philippines News Agency, the prosecution failed to establish Gayatin’s involvement or control over the seized items, which included 783 cases of cigarettes, a cigarette-making machine, and 2.5 million counterfeit Bureau of Internal Revenue (BIR) stamps. The BIR had initially claimed that the case involved PHP18.2 million in unpaid excise taxes. However, the court cited the existence of a valid lease agreement between Gayatin and the lessees, led by Jimmy Chua, as a critical factor in the decision.
The court added that the prosecution did not provide sufficient evidence to show that Gayatin had either actual or constructive possession of the unregistered goods. The case against other accused individuals, including Jimmy Chua, remains archived pending their arrest.