BIR files criminal complaints against ghost corporations involved in tax evasion amounting to P25.5 billion

The Bureau of Internal Revenue (BIR) has filed criminal complaints against four "ghost" companies for their involvement in fake transactions with legitimate businesses to evade taxes. This resulted in a revenue loss of P25.5 billion. BIR chief Romeo Lumagui Jr. stated that these companies sold fake services or transaction receipts that buyers used to deduct from their expenses or VAT. Lumagui added that the complaint was the result of a raid conducted in December 2022. Complaints were filed against Buildforce Trading Inc., Crazykitchen Foodtrade Corp., Decarich Supertrade Inc., and Redington Corporation. The companies are registered, but the transactions are fake, according to Lumagui. Those found responsible may face imprisonment and fines. Justice Secretary Jesus Crispin Remulla said the government's revenue loss could reach P100 billion. He added that they have a witness who informed them about the group's modus operandi. The Philippine National Police Anti-Cybercrime Group and the National Bureau of Investigation's Anti-Organized Crime Office will work together to parse the evidence. The BIR calls on ghost corporations to stop offering fake services for receipts, warning that they will be monitored, arrested, and charged. Buyers of these receipts are also urged to stop using them.

Photo courtesy: VAL/VBL, GMA Integrated News | MSN News 

According to Remulla, the witness also revealed that the group operates in various provinces and cities across the country, and they have connections with government officials who protect them from being caught.

"We were told na 'yung mga negosyante ay nagbabayad ng P50,000 to P100,000 a month para hindi sila mahuli. May mga koneksyon sila sa local government, sa Bureau of Internal Revenue, sa Office of the Ombudsman, sa Court of Tax Appeals," Remulla said.

He also warned the public to be cautious in dealing with companies offering receipts for services that were not rendered or for goods that were not actually purchased.

The BIR has been intensifying its efforts to go after tax evaders and has been conducting raids and investigations to catch those who are involved in illegal activities related to tax evasion.

The agency has also been urging the public to report any suspicious transactions and to comply with tax laws to help the government generate more revenue that can be used for the country's development programs.

Reference link:

BIR files complaint vs. ghost companies with P25B tax liability (msn.com)