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Advocates Philippines
BIR Files Tax Evasion Cases Against Buyers Of Ghost Receipts
Bureau of Internal Revenue Commissioner Romeo "Jun" Lumagui Jr. filed criminal cases before the Department of Justice against the buyers, corporate officers, accounting firms, and accountants that used Fake/Ghost Receipts. Photo courtesy of BIR
In a significant move against tax evasion, Commissioner Romeo D. Lumagui Jr. of the Bureau of Internal Revenue (BIR) has filed criminal cases against identified buyers or clients of the Fake/Ghost Receipts syndicate. The cases were officially filed today before the Department of Justice (DOJ).
The Fake/Ghost Receipts syndicate, a clandestine organization, specializes in registering ghost companies with the sole purpose of selling original receipts to buyers, enabling them to unlawfully reduce their tax liabilities.
The criminal cases filed by Commissioner Lumagui specifically target the corporate officers, accounting firms, and accountants of companies involved in purchasing Fake/Ghost Receipts. The BIR has estimated a total tax liability of 17.9 billion pesos against these erring taxpayers for their use of receipts issued by the syndicate.
Commissioner Lumagui emphasized the gravity of the situation, stating, "The BIR has filed criminal cases against Buyers of Fake/Ghost Receipts, their corporate officers, the accounting firms they engaged, and the CPAs that signed their documents.
A total tax liability of 17.9 billion pesos has been computed for this first set of cases. This is tax evasion of the highest order, and perhaps the most elaborate tax evasion scheme in the history of Philippine taxation. We will regularly file criminal cases against buyers of Fake/Ghost Receipts."
The Fake/Ghost Receipts syndicate came to Commissioner Lumagui's attention during a raid conducted in December 2022. Since then, he has been actively addressing this national issue. This marks the first time in BIR history that the issue of Fake/Ghost Receipts is being confronted head-on.
Prior to today's criminal cases, Commissioner Lumagui filed similar cases against the sellers of Fake/Ghost Receipts and their certified public accountants (CPAs) in March 2023. Additionally, an administrative case was filed with the Professional Regulation Commission for the revocation of the CPA's license. In April 2023, Commissioner Lumagui established the BIR National Task Force - Run After Fake Transactions (RAFT) to conduct audits on buyers of these illicit receipts. The BIR Accreditation of the involved CPA was also revoked in May 2023.
Moving forward, Commissioner Lumagui's focus will be on prosecuting the buyers, corporate officers, and accountants involved in the Fake/Ghost Receipts syndicate. The RAFT National Task Force, operating under the Office of the BIR Commissioner, will be responsible for addressing these cases.
"The BIR National Task Force - Run After Fake Transactions will pursue the Buyers of Fake/Ghost Receipts. BIR is the sole authority that can audit the buyers of ghost receipts. Coordinate with the task force. Submit documents. Attend the meetings. This is merely the first set of criminal cases against the Buyers," Commissioner Lumagui affirmed.
This marks a significant turning point for the BIR, as it is the first time in history that the issue of Fake/Ghost Receipts is being actively tackled, despite the syndicate having operated for over 15 years. As a top priority program for Commissioner Lumagui, a comprehensive approach has been implemented to combat this illicit syndicate. Buyers, sellers, corporate officers, accounting firms, and CPAs involved in the syndicate can expect the full force of the BIR to be directed towards them.
The Fake/Ghost Receipts syndicate, a clandestine organization, specializes in registering ghost companies with the sole purpose of selling original receipts to buyers, enabling them to unlawfully reduce their tax liabilities.
The criminal cases filed by Commissioner Lumagui specifically target the corporate officers, accounting firms, and accountants of companies involved in purchasing Fake/Ghost Receipts. The BIR has estimated a total tax liability of 17.9 billion pesos against these erring taxpayers for their use of receipts issued by the syndicate.
Commissioner Lumagui emphasized the gravity of the situation, stating, "The BIR has filed criminal cases against Buyers of Fake/Ghost Receipts, their corporate officers, the accounting firms they engaged, and the CPAs that signed their documents.
A total tax liability of 17.9 billion pesos has been computed for this first set of cases. This is tax evasion of the highest order, and perhaps the most elaborate tax evasion scheme in the history of Philippine taxation. We will regularly file criminal cases against buyers of Fake/Ghost Receipts."
The Fake/Ghost Receipts syndicate came to Commissioner Lumagui's attention during a raid conducted in December 2022. Since then, he has been actively addressing this national issue. This marks the first time in BIR history that the issue of Fake/Ghost Receipts is being confronted head-on.
Prior to today's criminal cases, Commissioner Lumagui filed similar cases against the sellers of Fake/Ghost Receipts and their certified public accountants (CPAs) in March 2023. Additionally, an administrative case was filed with the Professional Regulation Commission for the revocation of the CPA's license. In April 2023, Commissioner Lumagui established the BIR National Task Force - Run After Fake Transactions (RAFT) to conduct audits on buyers of these illicit receipts. The BIR Accreditation of the involved CPA was also revoked in May 2023.
Moving forward, Commissioner Lumagui's focus will be on prosecuting the buyers, corporate officers, and accountants involved in the Fake/Ghost Receipts syndicate. The RAFT National Task Force, operating under the Office of the BIR Commissioner, will be responsible for addressing these cases.
"The BIR National Task Force - Run After Fake Transactions will pursue the Buyers of Fake/Ghost Receipts. BIR is the sole authority that can audit the buyers of ghost receipts. Coordinate with the task force. Submit documents. Attend the meetings. This is merely the first set of criminal cases against the Buyers," Commissioner Lumagui affirmed.
This marks a significant turning point for the BIR, as it is the first time in history that the issue of Fake/Ghost Receipts is being actively tackled, despite the syndicate having operated for over 15 years. As a top priority program for Commissioner Lumagui, a comprehensive approach has been implemented to combat this illicit syndicate. Buyers, sellers, corporate officers, accounting firms, and CPAs involved in the syndicate can expect the full force of the BIR to be directed towards them.
Jun 21, 2023
