BIR files raps vs 69 over ‘ghost receipts’

The Bureau of Internal Revenue main office in Quezon City. INQUIRER PHOTO

MANILA, Philippines — The Bureau of Internal Revenue (BIR) on Wednesday filed criminal complaints against several corporations and individuals allegedly involved in the use of “ghost receipts,” resulting in P1.8 billion in tax liability.

BIR Commissioner Romeo Lumagui Jr. led the filing of 15 criminal cases before the Department of Justice against 69 respondents comprised of corporations, corporate officers, and accountants accused of buying and selling ghost receipts.

He said the respondents are involved in various industries such as construction; hardware; marketing of goods, equipment, office supplies, automotive oils; trading of metals; contractor of electrical and mechanical systems; and hotel and food services.

Syndicate

“This shows the magnitude of this syndicate because it covers an array of industries,” he said.

He added among the respondents is a big construction firm with transactions involving ghost receipts amounting to P600 million.

The respondents allegedly violated Section 254 (tax evasion), Section 255 (failure to supply correct and accurate information in the Income Tax Return and Value-Added Tax, or VAT returns), Section 267 (perjury), and Section 257 (making false records or reports) of the National Internal Revenue Code.

“We filed complaints against so many corporations and individuals because we want to put a stop to this scheme. We really want to change the behavior of taxpayers and tell them that this kind of scheme is no longer allowed because we really lose so much revenue from this,” Lumagui told reporters.

“The BIR is committed to filing civil and criminal charges against all corporations, corporate officers and accountants involved in this syndicate. We are already preparing the next set of criminal cases,” he added.

Lumagui explained the ghost companies sold fake receipts for bogus services or transactions, which their buyers, particularly businessmen, used to deduct from their taxable revenues or their VAT obligations.

The law states that taxpayers, especially businesses, may reduce their taxable income by showing receipts to prove that purchases were made.

The BIR chief said the agency already has a list of fake corporations that have been found issuing fake receipts.

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Decades

“These fake corporations are registered with the Securities and Exchange Commission. They are even registered with the BIR. They are going through the process of registration and they get receipts but they sell nothing, they don’t have any products or services. What they are selling are these ghost receipts,” he said.

Lumagui lamented the scheme of using fake transactions or ghost receipts has been going on for a long time.

“This has been happening for decades but it is only now that those involved are being caught,” he said.

He added taxpayers and businesses using fictitious receipts will be audited by BIR examiners.

Lumagui reiterated his call for the public to pay the right amount of taxes.