TO combat a significant tax evasion scheme involving fraudulent disability IDs, the Bureau of Internal Revenue (BIR) is initiating a nationwide investigation.
The scheme, which cost the government an estimated P88.2 billion in 2023, involves the use of fake identification cards for persons with disabilities (PWDs) to claim unwarranted tax deductions.
BIR Commissioner Romeo Lumagui Jr. announced that the agency will intensify tax audits of businesses reporting PWD-related transactions, verifying customer information including PWD ID numbers against government records.
Businesses found to have used fraudulent IDs will face penalties, including the assessment of deficiency VAT and interest.
The BIR will collaborate with the Department of Health and the National Council on Disability Affairs to identify and prevent further abuse of the PWD tax exemption program.
