THE Bureau of Internal Revenue (BIR) is launching a nationwide crackdown on counterfeit Persons with Disability (PWD) identification cards to safeguard the legitimate privileges of PWDs and prevent government revenue loss.
BIR Commissioner Romeo D. Lumagui Jr. stated that the bureau maintains a strong stance against fraudulent activities, highlighting the agency’s dedication to upholding tax incentives intended for PWDs. Lumagui emphasized that the BIR will fully enforce all tax privileges granted by law to legitimate PWDs while strictly enforcing documentation requirements under Revenue Regulations (RR) No. 5-2017 for businesses claiming tax deductions.
Lumagui further added that the proliferation of fake PWD IDs is a serious concern, constituting a tax-evasion scheme that deprives the government of significant revenue. The BIR is initiating investigations into individuals involved in these illegal activities, with those found guilty facing criminal charges, fines, and imprisonment.
The BIR is also supporting the Department of Social Welfare and Development’s (DSWD) unified PWD ID and database program, aimed at streamlining the verification of legitimate PWD transactions. Lumagui suggested that a data-sharing agreement between relevant government agencies could enhance the fight against tax leakage caused by fake PWD IDs.
Under Republic Act (RA) No. 7277, as amended by RA 9442 and 10754, establishments providing the mandated 20% discount and value-added tax (VAT) exemption to qualified PWDs can claim these discounts as tax deductions, provided they comply with the documentation and procedural requirements outlined in RR No. 5-2017.
Proper documentation, including invoices displaying the PWD’s name and ID number, is crucial for claiming tax deductions, Lumagui stated. He added that these documents serve as evidence of compliance with tax laws, ensuring that businesses support the welfare of PWDs while adhering to regulations.
The BIR encourages the public to report manufacturers, printers, sellers, and users of fake PWD IDs, as these activities disrespect legitimate PWDs and undermine the purpose of legal discounts designed to ease their financial burdens.
