Internal Revenue Service Commissioner Romeo D. Rumagi Jr. led the filing of criminal complaints with the Justice Department against four “ghost” companies that caused the government to lose an estimated $25.5 billion in taxes. They violate Sections 254, 255, and 267 of his Internal Revenue Code of 1997 (Tax Code), as amended.
“We are just getting started. The financial scale of this syndicate issuing fictitious receipts is staggering. I have ordered the BIR Legal Group to bring criminal charges against the individuals behind these companies Taxpayers and companies that used these fictitious receipts will be Audited.I assure the entire BIR army that I will be with them every step of the way.I have a list of both buyers and sellers of these fictitious receipts.We here Our main goal is to put an end to these fraudulent practices and we strongly hope to increase voluntary tax compliance,” said Commissioner Rumagi.
The lawsuit against these four companies stems from a raid conducted by Lumagi himself on a condominium unit in Quezon City in December 2022. This resulted in the seizure of thousands of fictitious receipts.
After a raid, subsequent investigations revealed that these ghost units had no legitimate business operations. These companies were established solely for the purpose of selling fictitious sales invoices and/or receipts to purchasers. As a result of these companies’ fraudulent tax schemes, the government has announced that in the tax year 2019-2021, including surcharges and interest, he will pay £17.63 billion in shortfall income tax and he will pay £7.91 billion. Lack of VAT is lost. .
“I want to convey to the public, especially those who pay proper taxes, the importance of all the work our institutions do, and especially the strengthening of our enforcement efforts. No, we will curb it as much as possible,” assured the Commissioner.
Strengthening BIR enforcement activities is one of Commissioner Rumagi’s concerns.
In early November 2022, the deputy commissioner of operations, he led a raid on a Manila warehouse containing millions of illegal vape products. In early December 2022, a tax evasion case worth his £1.2bn was filed against the DOJ against his five individuals behind a raided warehouse. In the same month, the BIR raided the aforementioned condominium operated by a syndicate selling fictitious receipts.
In the last week of January 2023, the Commissioner himself organized and oversaw a nationwide raid by BIR local officials in 21 states and 69 cities. The latest nationwide enforcement action took place last February 2023, during the filing of tax evasion lawsuits against 74 erring individual and corporate taxpayers, resulting in a total tax liability of approximately 3.58 billion, including increments. pound reached.
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