Billions of pesos worth of tax evasion cases are being pursued by the Department of Justice (DOJ) and the Bureau of Internal Revenue (BIR), many of which involve the use of fake receipts issued by ghost corporations.
This was according to BIR Commissioner Romeo D. Lumagui Jr. on Thursday, saying these cases contribute significantly to the government's tax gap, which currently stands at around 40%.
"A large portion of that gap is due to these fraudulent schemes," said Lumagui.
Lumagui said the fraudulent receipts — some dating as far back as 2010 — were used by companies, including well-known and large corporations, to reduce their tax liabilities. “These are not just small-time firms. We’re going after major corporations,” he said.
Some of the cases are now with the DOJ for criminal prosecution. “The DOJ is very supportive. We’re working closely with them to bring these cases to trial,” Lumagui added.
While the criminal cases are moving forward, the BIR is also pursuing financial assessments against the companies involved. “Even if there’s no conviction yet, we continue the assessments to collect what is due,” he said. “If we win in court, we can obtain writs of execution to enforce collection.”
The BIR chief warned companies still using ghost receipts and evading taxes: “Pay the correct taxes now. Don’t expect to get away with illegal schemes. We have proven that we can file cases and hold people accountable.”
Lumagui also called on businesses to cooperate with the agency. “Let’s fix this the right way. Pay the correct taxes. In the end, the whole country benefits from it,” he said, stressing that legitimate businesses suffer unfair competition due to those that cheat the system.
According to Lumagui, they are also auditing online gambling firms and reviewing compliance to ensure the correct taxes are paid. “If we find discrepancies, we file cases,” he said.
Lumagui said the agency investigates all credible leads and takes appropriate action. “We make sure everyone pays the right taxes.”
He also backed calls for stiffer penalties on deliberate tax evasion. “A bill was filed during the 19th Congress to elevate tax evasion, in some cases, to economic sabotage. We support that. It would make taxpayers more careful and compliant.”
He said efforts are ongoing to speed up the resolution of existing cases and ensure that no one escapes accountability.