Philippine Tax Bureau Wins Lawsuit Against "Tap Fog" Seller, to Receive 21.4 Million USD

Regulations by 2FIRSTS.ai
Feb.27.2024
Philippine Tax Bureau Wins Lawsuit Against "Tap Fog" Seller, to Receive 21.4 Million USD
The Philippine BIR wins tax evasion lawsuit against "Tap Fog" e-cigarette brand, estimated to receive 12 billion pesos in civil liability.

According to a report by BusinessMirror on February 26, the Bureau of Internal Revenue (BIR) in the Philippines announced on Monday that it has won a tax evasion case against the seller of the e-cigarette brand "Tap Fog." The estimated civil liability amount is approximately 1.2 billion pesos (21,388,800 US dollars).

 

According to a statement from the tax authorities, after conducting a series of surprise inspections in November 2022, the agency filed tax evasion complaints against Tap Fog brand sellers and four other e-cigarette traders in December 2022.

 

The statement also indicated that arrest warrants have been issued by the Philippine Tax Appeals Court and the Urban Trial Court for the masterminds behind the "Tap Fog" brand.

 

In addition, the statement quoted Romeo D. Lumagui Jr., Commissioner of the Bureau of Internal Revenue (BIR), as saying, "This proves our commitment to filing cases after conducting raid operations." The BIR did not disclose the identity of the trader.

 

The official also added that the Bureau of Internal Revenue (BIR) is closely monitoring the e-cigarette industry and reminding e-cigarette retailers to comply with registration and tax requirements under the law. The BIR's statement did not disclose the names of the sellers of the "Tap Fog" brand.

 

The Bureau of Internal Revenue (BIR) has charged "Tap Fog" and its cohorts, including some individuals whose names have not been disclosed, with violating sections 263-A ("selling heated tobacco products and vaporized products at prices lower than the comprehensive consumption tax and value-added tax in the Philippines") and 265 ("selling or offering for sale items with false or counterfeit tax stamps attached") of the Philippine tax code, and failing to pay the corresponding taxes. The BIR has filed a lawsuit against "Tap Fog" for tax evasion and failure to file tax returns.

 

Previously, Commissioner Caesar Dulay pledged at a press conference in January that the Bureau of Internal Revenue (BIR) would continue to take aggressive action against illegal trading of e-cigarettes and vaping products. "We will continue doing what we have always done - fearless and proactive enforcement activities. We will still go after those engaging in blatant and illegal activities, such as illegal trading of cigarettes and e-cigarette products."

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

EVO NXT 2026 Opens in Prague as Global NGP Industry Gathers for Two-Day Event
EVO NXT 2026 Opens in Prague as Global NGP Industry Gathers for Two-Day Event
2026 — EVO NXT 2026 officially opened today in Prague, bringing together manufacturers, brand owners, retailers, and decision-makers from across the global next-generation products (NGP) industry. As the event’s official media partner for the fourth consecutive year, 2Firsts is reporting on site, tracking key developments across the exhibition floor, forum agenda, and broader industry discussions.
Apr.17 by 2FIRSTS.ai
FDA Commissioner Marty Makary Resigns After Opposing Trump Administration’s Flavored Vape Push
FDA Commissioner Marty Makary Resigns After Opposing Trump Administration’s Flavored Vape Push
FDA Commissioner Marty Makary resigned on May 12 after opposing the Trump administration’s push to authorize fruit-flavored vaping products, according to reporting by The New York Times. Makary reportedly objected over concerns that flavored vapes could attract young people and refused to support broader approvals.
News
May.13
Australia Plans Tougher Penalties for Illicit Tobacco and Vape Crime
Australia Plans Tougher Penalties for Illicit Tobacco and Vape Crime
The Australian government is preparing a new crackdown on the illicit tobacco market, including stronger penalties, expanded police surveillance powers and tougher asset seizure measures.
Mar.19 by 2FIRSTS.ai
Capital Group Takes 5.61% Stake in KT&G, Joining Major Foreign Shareholders
Capital Group Takes 5.61% Stake in KT&G, Joining Major Foreign Shareholders
KT&G disclosed in a regulatory filing on Friday that Capital Research and Management Company, the investment management arm of Capital Group, had acquired a 5.61% stake through purchases made on April 22 and May 4. The move places Capital Group among KT&G’s prominent foreign shareholders, alongside BlackRock, First Eagle Investment Management and Singapore’s sovereign wealth fund GIC.
May.08 by 2FIRSTS.ai
Seoul to Fine Use of Liquid E-Cigarettes in No-Smoking Areas From April 24
Seoul to Fine Use of Liquid E-Cigarettes in No-Smoking Areas From April 24
Seoul will begin fining the use of all tobacco products, including liquid e-cigarettes, in no-smoking areas from April 24, when the revised Tobacco Business Act takes effect.
Apr.09 by 2FIRSTS.ai
China Boton Group Posts 2025 Revenue of RMB 1.496 Billion, With E-Cigarette Product Revenue Up 4.6%
China Boton Group Posts 2025 Revenue of RMB 1.496 Billion, With E-Cigarette Product Revenue Up 4.6%
China Boton Group reported its results for the year ended December 31, 2025. Revenue was RMB 1.496 billion, down about 9.5% from RMB 1.653 billion in 2024. Gross profit was RMB 377.1 million, with a gross margin of 25.2%, and the group recorded a net loss of RMB 1.000 billion for the year.
Mar.24 by 2FIRSTS.ai