The Bureau of Internal Revenue (BIR) on Thursday said its agents will be deploying a massive probe on Filipinos using fake IDs for persons with disabilities (PWDs) and businesses granting related discounts, which already led to an P88.2 billion loss in government revenue last year.

The BIR’s warning came after the Senate on 5 December conducted an inquiry on tax leakages caused by fake PWD IDs.

“Expect the BIR to run after fake PWD ID sellers and users. The discount given by law to PWDs is for the improvement of their well-being and easing of their financial burden. It is not some common discount card that is accessible to the general public,” BIR Commissioner Romeo Lumagui Jr. said.

In a statement to the media, BIR said it is strengthening its coordination with the Department of Health and the National Council on Disability Affairs to verify the legitimacy of PWD IDs customers present at various establishments.

Penalties possible

PWD IDs enable their owners to receive a 20 percent discount on certain goods and services and become exempted from paying value-added tax (VAT).

BIR has also stressed to establishments’ owners and staff to carefully review its Revenue Regulations No. 5-2017 which detail penalties on evading tax using fake PWD IDs.

The regulations state that establishments must submit records of sales to PWDs which include their names, ID number, disability, and amount of discount and VAT exemption.

“If the BIR finds that such PWD ID numbers are not legitimate, it will disallow the deductions claimed by the establishments. Additionally, VAT-exempt sales linked to fake IDs will be assessed with deficiency VAT, including penalties and interest,” BIR said.

The Department of Finance aims to collect a total government revenue of P4.3 trillion this year to implement infrastructure projects and deliver other public services and reduce the country’s reliance on loans.

Finance Secretary Ralph Recto ordered the BIR and the Bureau of Customs to ensure tax collections increase by 11.8 percent each year.