Title: Senator Urges Bureau of Internal Revenue to Combat Widespread Use of Counterfeit Receipts
Subtitle: Ghost and Fake Receipts Pose Serious Threat to Government Revenues and Micro-enterprises
Date: [Current Date]
In a bid to address the rising issue of “ghost” and fake receipts, Senator Sherwin Gatchalian has called on the Bureau of Internal Revenue (BIR) to intensify its efforts. Gatchalian emphasized that such fraudulent activities not only deplete government revenues but also adversely affect micro-enterprises across the country.
Ghost receipts refer to the issuance of receipts without any underlying transactions or fictitious transactions. Essentially, they represent receipts for nonexistent sales. On the other hand, fake receipts are unauthorized and aim to understate sales figures, avoiding accurate taxation.
According to BIR Commissioner Romeo Lumagui, Jr., the value of ghost receipts issued recently reached an estimated P1.3 trillion. This colossal figure implies that the government has lost at least P370 billion in revenues due to the prevalence of these fraudulent receipts, considering the corresponding income tax and value-added tax rates of 25 percent and 12 percent, respectively.
Gatchalian expressed deep concern about the extent of this issue, as these fraudulent receipts not only impact government collections but also harm honest taxpayers who unknowingly fall victim to such schemes. The senator cited a specific case where a business purchased goods using fake receipts, resulting in the disapproval of their input value-added tax (VAT) claim by the BIR.
While the BIR has already taken legal action against both buyers and sellers of ghost receipts, Gatchalian stressed the urgency of further intensifying the campaign to ensure improved government revenue collection. Additionally, the senator highlighted the need to protect small businesses that often fall prey to the sellers of ghost receipts or enterprises issuing fake receipts.
In June of this year, the BIR filed criminal cases against buyers of ghost receipts, which had resulted in a staggering revenue loss of P17.9 billion. The agency also pursued legal action against sellers of ghost receipts in March, including four “ghost” corporations that caused the government an approximate P25.5 billion in revenue loss.
Gatchalian acknowledged the challenge of proving a buyer’s innocence in transactions involving significant sums of money, particularly when financial institutions are involved. Nevertheless, the senator requested that the BIR present a report detailing the agency’s efforts in combating the use of ghost and fake receipts.
The fight against counterfeit receipts remains a pressing issue, one that demands not only swift action from the BIR but also greater awareness among businesses and consumers. As the government works to preserve its revenues, protecting the integrity of the tax system will safeguard the interests of honest taxpayers and the stability of micro-enterprises in the country.
