BIR sues 4 ‘ghost’ firms for P25.5B tax fraud
BUREAU of Internal Revenue (BIR) Commissioner Romeo D. Lumagui, Jr. has filed criminal cases before the Department of Justice (DOJ) against four corporations accused of causing the government to lose an estimated P25.5 billion in taxes through the issuance of counterfeit receipts and sales invoices.
The BIR withheld the names of the corporations which were charged with violation of Sections 254, 255, and 267 of the National Internal Revenue Code of 1997, as amended.
During a press conference on Tuesday, Lumagui stated that the BIR has a list of both buyers and sellers of these fictitious receipts, and the taxpayers and businesses who used them will be audited by BIR examiners.
The case against the four corporations stemmed from the December 2022 raid conducted by Lumagui at a condominium unit in Quezon City, which led to the seizure of thousands of fictitious receipts.
Subsequent investigation revealed that these “ghost” corporations were established solely for the purpose of selling fictitious sales invoices and/or receipts to their buyers for the latter’s claim of false and anomalous purchases.
As a result of their fraudulent tax schemes, the government is losing an estimated total deficiency income tax amounting to P17.63 billion and total deficiency value-added tax amounting to P7.91 billion for taxable years 2019-2021, inclusive of surcharges and interests.
Lumagui emphasized the importance of the BIR’s activities and the strengthening of its enforcement efforts. He stated that he would not allow such corruption to continue and assured the public that the BIR would do everything within its power to suppress these activities.
Lumagui, who previously led raids against illegal vape products and illicit cigarettes, orchestrated and supervised a nationwide raid by BIR regional officials in 21 provinces and 69 cities in late January 2023, targeting warehouses and stores where illicit cigarettes were sold or stored.
The most recent nationwide enforcement activity was in February 2023, when tax evasion cases were filed against 74 erring individuals and corporate taxpayers with total tax liabilities, inclusive of increments, amounting to approximately P3.58 billion.
