INTERNAL Revenue Commissioner Romeo D. Lumagui Jr. filed criminal cases against identified buyers or clients of the fake/ghost receipts syndicate.
The cases were filed today, before the Department of Justice (DOJ).
This syndicate registers ghost companies whose sole business purpose is to sell original receipts so their buyers could illegally reduce their tax liabilities.
The cases filed before the Department of Justice targeted the corporate officers, accounting firms, and accountants of companies that are buyers of Fake/Ghost Receipts. An estimate of P17.9 billion in total tax liability has been computed by the BIR against these erring taxpayers for their use of Fake/Ghost Receipts issued by the syndicate.
“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 17.9B 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,” Lumagui stated.
This Fake/Ghost Receipts syndicate was discovered by Lumagui during a raid last December 2022. From that point forward, he has consistently addressed this national issue. This is the first time in BIR history where the issue of Fake/Ghost Receipts is being addressed.
Commissioner Lumagui filed criminal cases against the Sellers and their CPA last March 2023. The Commissioner also filed an administrative case with the Professional Regulation Commission for the revocation of the license of the aforementioned CPA last March 2023. He also created the BIR National Task Force – Run After Fake Transactions (RAFT) for the purpose of auditing the buyers of said receipts last April 2023. Commissioner Lumagui also revoked the BIR Accreditation of this CPA last May 2023.
Now, his focus is towards the buyers, their corporate officers, and their accountants. This will be addressed by the RAFT National Task Force under the Office of the BIR Commissioner.
“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,” Lumagui stated.
This is the first time in BIR history where the issue of Fake/Ghost Receipts is being addressed despite being in operation for about more than 15 years. As a priority program of Commissioner Lumagui, he instituted a holistic approach in battling this syndicate. Buyers, Sellers, Corporate Officers, Accounting Firms, and CPAs involved in this syndicate will suffer the full force of the BIR.
