In the 1990s,
Forbes reported about the "considerable corruption still prevalent" in the Philippines, bolstering that claim by citing how Tan "single-handedly held up a tax reform intended to remove special privileges for local tobacco and beer producers." and that Tan was spending his free time "[j]ousting with the government over charges of tax evasion" and with
Philippine Airlines "shareholders who tried to block his bid for the airline." However, the 25 billion-peso (US$622 million) tax evasion case against Tan was dismissed in March 1999, after simmering through the terms of presidents
Corazon Aquino and
Fidel Ramos. The
Presidential Commission on Good Government ("PCGG") filed a case against Tan in July 1987, claiming that the state is entitled to PHP 50 billion in damages and PHP 1 billion in legal expenses. The PCGG also alleged that the companies that Tan held in trust for the former president Marcos – such as
Fortune Tobacco,
Asia Brewery,
Allied Banking Corporation, Foremost Farms, Himmel Industries, Grandspan Development Corp., Silangan Holdings, Dominium Realty and Construction Corp., and Shareholdings Inc. – were illegally acquired by Marcos using government funds. The state was seeking to recover 60% of Tan's holdings in those companies. The PCGG then seized control of Tan's companies until the anti-graft court Sandiganbayan's decision in 2006 to nullify the writs of sequestration on the companies—the court ruled that the writs had no basis as there was no
prima facie proof that any of Tan's assets were obtained illegally. Following the PCGG's appeal, the
Supreme Court of the Philippines on 7 December 2007 affirmed the decision of the lower court, having found no proof that Tan, his family, or his various businesses took undue advantage of their relationship with former president Marcos or no factual basis for the sequestration of the stocks. The PCGG announced through court filings on 29 April 2009 that it would be "resting its case" and terminating its PHP 51 billion lawsuit even though the government lawyers had earlier insisted in court that they still had several key witnesses, including former First Lady
Imelda Marcos. In 2017, President
Rodrigo Duterte accused Tan of owing the Philippine government around US$600 million in unpaid taxes, but subsequently decided to stop discussing the issue. ==Personal life==