This followed a BIR raid on Vermirich's manufacturing facility at Cavite Light Industrial Park in Silang, Cavite.
The consecutive raids were carried out by BIR due to Vermirich's excise tax debt amounting to PHP 800 million since 2018.
BIR Commissioner Romeo D. Lumagui, Jr., Atty. Jethro M. Sabariaga, Assistant Commissioner of Large Taxpayers Service, and BIR representatives led the raid, which was part of the agency's campaign against tax evaders and illegal traders.
According to the BIR, Vermirich violated Sections 130, 150-B, 254, and 263 of the National Internal Revenue Code of 1997, as amended, which pertain to the filing and payment of excise taxes. Vermirich's PHP 800 million tax debt includes interest, surcharges, penalties, and the 12 percent value-added tax (VAT) on juice drinks.
Vermirich also failed to obtain the necessary permits to operate as a manufacturer of sweetened beverage products subject to excise tax, which is a violation of Section 154 of the aforementioned Code.
S&R was implicated in the raid due to their sale of S&R Lemon Tea and S&R Raspberry Tea powdered juice beverages, which are produced by Vermirich.
In a statement, the BIR said that they informed S&R in a July 6, 2021 letter to comply with regulatory requirements as a distributor of Vermirich's products.
"As the distributor of Vermirich's products, S&R failed to exercise due diligence in ascertaining whether the appropriate taxes had been paid by Vermirich on the sweetened beverages in question. Consequently, S&R can be held liable for violations of Section 4, Revenue Regulations No. 20-2018, and Sections 130, 150-B, and 263 of the NIRC," according to the BIR statement.
BIR also conducted raids on Supervalue Incorporated and Super Shopping Market Incorporated at SM City North Mall in Quezon City after discovering boxes of SM Bonus Apple Juice Drink and SM Bonus Orange Juice Drink at Vermirich's warehouse during the Cavite raid.
The BIR found out that the two stores in Quezon City also distributed products made by Vermirich, which implicated them in the raid.
BIR assured that they will also investigate other sweetened beverage manufacturers to determine if they have the necessary permits to produce their products and if they are paying the correct taxes.
