BIR files complaint vs. ghost companies with P25B tax liability

The Bureau of Internal Revenue (BIR) on Thursday filed criminal complaints against four “ghost” corporations involved in fake transactions with legitimate businesses for the evasion of taxes, which resulted in a revenue loss of P25.5 billion.

In an ambush interview, BIR chief Romeo Lumagui Jr. said the ghost companies sold fake services or transaction receipts, which their buyers used to deduct from their expenses or their VAT.

“Itong sindikato na ito, nag tatayo talaga sila ng korporasyon. So pag tinignan niyo… rehistrado ang mga korporasyon. ‘Yung rebiso, nagkukuha sila ng totoong rehistradong resibo, pero hindi totoo ‘yung mga transaksyon,” Lumagui said.

(The syndicate establishes a corporation. So if you look into it, the corporation is registered. They obtain receipts that are truly registered, but the transactions are fake.)

“Hindi naman mabibiktima ang ordinary consumer dito dahil kasi hindi naman sila mag bibigay ng resibo sa ordinary consumers dahil ang negosyo nila mag bigay ng resibo sa mga bumibili para magamit as deductions,” he later added.

(Ordinary consumers won't be fooled by this because they will not issue receipts to ordinary consumers because their business is to give receipts to buyers for deductions.)

According to Lumagui, complaints were filed against Buildforce Trading Inc., Crazykitchen Foodtrade Corp., Decarich Supertrade Inc., and Redington Corporation. before the Department of Justice (DOJ).

He added that the complaint is the result of the raid conducted in December 2022.

“If you will recall, meron tayong nahuli na kumpanya na nagbebenta or actually a syndicate na selling fake receipts. ‘Yan ang kanilang negosyo. They have no transactions, they put up corporations specifically to sell fake receipts. ‘Yan ang binebenta nila,” Lumagui said.

The BIR chief said those found responsible may be imprisoned and fined.

“Dahil kasi malinaw na malinaw din na sakop yan ng ating batas ng tax evasion. In addition to, of course, the tax liability na natakasan nila with all the penalties and surcharges na i-impose din natin dyan,” Lumagui said.

(It is clear that this is in violation of our law on tax evasion. In addition to this, of course, is the tax liability that they escaped with all the penalties and surcharges that will be imposed.)

He also called on ghost corporations to stop offering fake services for receipts, saying the BIR will file complaints against them.

“Sana po itong mga gumagawa ng ganitong uri na illegal na activity ay tigilan na natin dahil this time seryoso kami, tututukan namin ito, huhulihin namin kayo at kakasuhan namin kayo para matigil ito,” he said.

(I hope that everyone doing this kind of illegal activity will stop because we are serious, we will monitor this, we will arrest you, and we will file charges against you.)

“Yung panawagan din natin sa mga bumibili ng mga ganitong resibo, ang panawagan natin ay wag na kayong gumamit ng ganitong resibo. Wag na kayo bumili,” he added.

(We also call on buyers of these receipts to stop using them. Don't buy them.) 

Justice Secretary Jesus Crispin Remulla said the government has barely touched the surface of "organized crime."

He said the government’s revenue loss could reach P100 billion.

"The 24 computers we’re examining, and it looks like we will reach P100 billion at least sa mga value ng receipts generated by groups of companies organized to deceive the government through the fake receipts," Remulla told reporters.

Remulla said they have a witness who informed them about the group’s modus operandi.

"Ang modus niyan every three years pinapalitan pa nila eh. Meron silang ginagamit na iba’t ibang kumpanya na iba’t ibang resibo," Remulla said.

"They’re so organized. Their companies are incorporated, they have offices, they churn out receipts by the billions pero marami sa kumpanyang ito, isa lang ang empleyado," he added.

He said 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. —VAL/VBL, GMA Integrated News