THE BUREAU of Internal Revenue (BIR) on Thursday filed 127 complaints of tax evasion amounting to P6.1 billion against companies and its officers before the Department of Justice (DoJ).
“All of the cases we filed went through the (legal) process and we need to ensure that there is due process happening here,” BIR Commissioner Romeo D. Lumagui, Jr. told reporters at the DoJ in Manila. “They (companies) were audited, and we gave them an opportunity to respond and present how much tax they actually need to pay.”
In a statement, the BIR said criminal cases were filed against 214 corporate officers who failed to properly report company revenues.
While not giving names, the BIR said the companies were involved in various industries such as manufacturing, retail importation, and construction.
“This is a reminder to every corporation and corporate officer not to ignore the BIR. Do so and we will file criminal cases against you,” Mr. Lumagui said.
The BIR has been ramping up its campaign against tax evaders. In February, the agency filed 74 tax complaints worth P3.5 billion against private companies and people with large liabilities.
Mr. Lumagui also urged companies to avoid using fake or “ghost receipts” and to accurately report their revenues.
“As much as possible we want to avoid filing these cases, we want to encourage our taxpayers to pay their taxes properly to avoid this,” he said.
In June, the BIR filed criminal complaints against companies that bought fake receipts that led to tax losses amounting to P17.9 billion.
The tax bureau in March went after the sellers of fake receipts, including four “ghost” corporations and their accountants. The BIR said the sellers’ operations cost the government about P25.5 billion in taxes.
Mr. Lumagui on Tuesday said the practice of selling fake receipts may have cost the government as much as P370 billion in tax revenues. He said the sale of ghost receipts has reached P1.3 trillion.
The BIR in May filed 69 complaints of tax evasion worth P1.8 billion against tobacco traders caught during a nationwide raid, which the agency said was the first of its kind in its history.
Mr. Lumagui earlier said the filing of criminal cases and raids of illegal businesses would deter more traders from conducting their operations.
These initiatives are part of its Run After Tax Evaders program.
“We urge our taxpayers to participate in all of the BIR processes and avoid hiding since we will give you an opportunity to explain what you need to pay,” Mr. Lumagui said.
Bienvenido S. Oplas, Jr., founder of free market think tank Minimal Government Thinkers, said the BIR’s aggressive tax collection measures could help the agency reach its collection goal this year.
“The strict enforcement of tax laws should also be coupled with simpler procedures, easier compliance and fewer papers and signatures,” he said in a Viber message.
“Otherwise, businesses will be forced to spend more on legal and political protection which would be nonproductive business spending.”
The tax bureau expects to collect P2.64 trillion in revenues this year, which is 13% higher than P2.34 trillion last year. The BIR collects about 70% of government revenues. — J.V.D. Ordoñez
