[Ask The Tax Whiz] What are fake receipts and transactions?

The BIR has started to locate persons/corporations who issue falsified official receipts. What are the consequences of issuing fake receipts?

Any person who issues fake receipts violates Sections 254, 255, and 267 of the Tax Code which are summarized as follows:

“SEC. 254. Any person who willfully attempts to evade or defeat any tax or its payment shall be punished by a fine not less than Five hundred thousand pesos (P500,000) but not more than Ten million pesos (P10,000,000) and suffer imprisonment of not less than six (6) years but not more than Ten (10) years.”

“SEC. 255. Any person who willfully fails to pay such tax, make such return, keep such record, or supply correct and accurate information, or withhold or remit taxes withheld, or refund excess taxes withheld on compensation shall be punished by a fine of not less than Ten thousand pesos (P10,000) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.”

“SEC. 267. Any person who willfully files a declaration, return or statement containing information which is not true and correct as to every material matter shall, upon conviction, be subject to the penalties prescribed for perjury under the Revised Penal Code.”

Also, if a certified public accountant is found to be involved in issuing fake receipts, the CPA certification or license would be automatically revoked or canceled upon conviction.

I’ve read that the BIR has lost P25.5 billion revenues due to fake receipts, but are there specific corporations that BIR identified that issued fake receipts?

Yes, the BIR has identified the following top 4 corporations that allegedly issue fake receipts to evade taxes:

1. Buildforce Trading, Incorporated
2. Crazykitchen Foodtrade Corporation
3. Decarich Supertrade, Incorporated
4. Redington Corporation

According to the BIR, these companies sold fake receipts for falsified transactions, which were then used by their buyers to claim expenses or to deduct from their VAT obligations.

Since the BIR is now trying to eliminate false transactions, who are the persons of interest for these? Does the BIR have any plans to seize them?

The BIR considers the (1) buyers, (2) sellers and (3) CPAs as their persons of interest in which a CPA and the sellers of such fake receipts are already facing criminal cases.

Also, the BIR launched its priority programs including Run After Fake Transactions or RAFT which was created for the purpose of auditing and investigating the buyers of fake receipts.

Do you have any questions regarding your receipts and transactions? Download TaxWhizPH Mobile App and use the unli-chat feature. You may also book a consultation with our consultants through the app. – Rappler.com