The Bureau of Internal Revenue (BIR) has declared an all-out war against tax evaders who use ghost receipts.
The BIR’s Run After Fake Transactions (RAFT) program, created by BIR Commissioner Romeo D. Lumagui Jr., aims to put an end to this fraudulent practice.
It is the first program of its kind in BIR history, the tax agency said in a statement yesterday.
Ghost receipts are fictitious receipts/invoices created to reduce income tax and VAT liabilities.
They are used to claim false deductions/expenses and input VAT on fictitious transactions, defrauding the government of taxes.
The BIR said that the program will be waged on three fronts: buyers, sellers, and certified public accountants (CPAs).
“Buyers of ghost receipts will likewise be audited by the BIR. CPAs will have their licenses revoked for abetting and advising their clients to avail of a tax evasion scheme. Buyers, sellers, and CPAs will be imprisoned for six to 10 years due to tax evasion. This is an all-out war. All available BIR forces will be deployed, this is the top priority program for our enforcement activities,” Lumagui said.
Last December 2022, the BIR raided a condominium unit in Quezon City resulting in the confiscation of thousands of ghost receipts. The tax agency filed criminal cases against the sellers of these ghost receipts on March 16, 2023, and a case for the revocation of the license of the involved CPA before the Professional Regulation Commission on March 21, 2023.
“In the coming April 17 deadline, this is my last warning to all buyers of ghost or fictitious receipts. Do not use the same in your tax filings. Do not listen to your CPAs or financial advisors telling you to evade your taxes through ghost receipts. We have a list of buyers and sellers of ghost receipts. Your business will be tagged and audited,” Lumagui said.
“You will spend more due to this audit, in comparison to just paying the proper taxes. You, your company officers, and financial advisors will be imprisoned for tax evasion. Not only will you lose millions of pesos, you will also lose your freedom,” he added in his ultimatum to the taxpaying public.
