BIR Targets Buyers of Ghost Receipts in Tax Fraud Case
MANILA, Philippines – The Bureau of Internal Revenue (BIR) has filed multiple criminal complaints against buyers of ghost receipts, exposing fraudulent transactions that led to a staggering P1.41 billion loss in government taxes. This crackdown highlights the BIR’s intensified efforts to curb tax evasion and fraudulent practices within various industries.
In a recent press briefing, BIR Commissioner Romeo Lumagui Jr. revealed that 23 corporations, 56 corporate officers, and 17 certified public accountants are now facing charges before the Department of Justice (DOJ). These complaints include tax evasion, failure to provide accurate information, perjury, and false reporting linked to the use of ghost receipts.
Industries Involved and Ghost Corporation Scheme Explained
The implicated companies span diverse sectors such as construction, manufacturing, food, electronics, entertainment, marketing, and retail. They allegedly purchased fake receipts from ghost corporations—entities that exist solely on paper with no real operations, employees, or assets.
Commissioner Lumagui explained that previous complaints had already targeted these ghost corporations themselves. “These companies were registered with the Securities and Exchange Commission but had no legitimate business other than selling receipts,” he noted.
“From there, we also looked into who was using the receipts from these confirmed ghost companies. So everyone who used these receipts—these are the ones we have filed cases against,” Lumagui added.
How the Fraudulent Scheme Worked
Justice Undersecretary Jesse Andres detailed the scheme behind this tax fraud. Companies artificially inflated expenses by using fake receipts, which reduced their taxable income and thus their tax payments. “The tax liability becomes smaller, but the supporting receipts for the expenses are fraudulent—fake receipts from companies that were just put up to supply these,” he said.
The BIR detected the scheme through careful cross-checking. Lumagui explained, “Initially, respondents react with surprise and claim they weren’t earning. But through third-party information, the BIR uncovered actual earnings, compared these with reported income, and identified discrepancies in taxes paid.”
He also pointed out that many content creators do not report their earnings at all despite evidence of income from social media platforms.
Next Steps in Legal Proceedings
Following the filing of complaints, the DOJ will review the documents thoroughly. Andres emphasized the importance of building a solid case: “We are undergoing the normal case buildup to ensure that there is sufficient documentary evidence and other supporting materials to build a strong case against all of these individual respondents.”
This coordinated action between the BIR and DOJ sends a strong message against fraudulent tax practices and highlights the government’s commitment to protecting public funds.
For more news and updates on tax evasion cases, visit Filipinokami.com.
