Wazzup Pilipinas!?
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. announced that the agency's war against ghost receipts, illicit vape, and illicit cigarettes will soldier on this 2025. This announcement was made in relation to the speech made by President Ferdinand R. Marcos Jr. during the BIR Kick-Off event last Tuesday, where he declared that individuals and companies who engage in tax fraud will be held accountable.
"The Run After Fake Transactions led to the filing of cases against ghost sellers and buyers and the collection of more than P4.3 billion, a significant jump from the more than P600 million collected in 2023.
Meanwhile, crackdowns on illicit trade in cigarettes, vapes, and other excisable goods led to the collection of more than P110 million last year.
I have said this before: We will hold those who continue to circumvent our system accountable" President Marcos Jr. stated.
The Run After Fake Transactions (RAFT) task force has been highly successful, contributing to the historic rise in voluntary compliance in Value-Added Tax (VAT) collection last 2024. This rise in VAT collection last 2024 led the way of BIR achieving its Development Budget Coordination Committee (DBCC) collection target last year, a first after twenty long years.
Since 2024, the Department of Justice (DOJ) has been regularly releasing favorable decisions in relation to the criminal cases filed by the RAFT task force against buyers of Ghost Receipts. The DOJ has filed criminal charges against these buyers of Ghost Receipts, and as a matter of course, the Courts will be issuing the warrants of arrest against the responsible corporate officers.
"The BIR's War against Ghost Receipts led the way in achieving our DBCC collection goal for 2024. We experienced a historic increase in VAT collection because of our RAFT task force. The DOJ has also released decisions in favor of BIR's criminal cases against buyers of Ghost Receipts. Warrants of arrest will follow. We are grateful to President Bongbong Marcos and DOJ Secretary Boying Remulla for their support in the BIR's war against Ghost Receipts" Commissioner Lumagui stated.
Commissioner Lumagui reports that there are already several enforcement activities planned for 2025 against the proliferation of illicit vape and cigarettes.
"For 2025, the BIR will continue to raid stores, warehouses, and establishments found to have illicit vape or cigarettes. This includes the taking down of illicit vape or cigarettes found online. It does not matter whether the criminal is engaged in large-scale or small-scale operations. Both are criminal operations. " Commissioner Lumagui stated.
The BIR had several large-scale raids against illicit cigarettes last 2024. The BIR raided 3 warehouses and factories in Cavite with 5.4 billion pesos in tax liability last February 2024. Two months after, the BIR also raided warehouses in Agusan del Sur and Surigao del Sur, the criminals will be facing 219 million pesos in tax liability. Another raid of 7 makeshift warehouses in Palawan last May 2024 yielded 150 million pesos in tax liability.
The BIR also conducted a night raid of warehouses in Caloocan and Quezon City last September 2024 where 838 million pesos in tax liability was discovered. In the same month, another raid of 4 large warehouses in Clark, Pampanga uncovered 8 billion pesos in tax liability. The largest illicit cigarette operation for 2024 was when the BIR raided syndicate with a factory and warehouses in Bulacan and Valenzuela City last November 2024, 8.5 billion pesos in tax liability was computed after this raid.
The BIR is also consistent in its enforcement operations against illicit vape last 2024, targeting both large-scale and small-scale operations. Last March 2024, the BIR raided a warehouse in Laguna where 102,900 bottles of Flava vape products were confiscated. A month after, the BIR raided warehouses in Manila and Rizal where 63,138 illicit vape products were also confiscated. Last July 2024, a Flava vape vending machine in Quezon City was also confiscated through the report of a netizen-informant. The BIR also raided the Taytay Tiangge Market last August 2024, confiscating 7,920 illicit vape products.
Commissioner Lumagui himself joined the raid of the Philippine Vape Festival last August 2024 where 5,385 illicit vape products were seized. The festival was marketed as a compliance summit but the BIR surveillance team reported that all of the products during the said event had no internal revenue stamps, which meant that the excise taxes on all of those products were not paid.
Commissioner Lumagui also ordered a nationwide and weekly raid of retail/reseller stores with illicit vape products last October 2024. These weekly raids continued until December 2024. A total of 872 stores of illicit vape products were raided, with 574,920 illicit vape products seized.
During these nationwide raids against illicit vape, Commissioner Lumagui also raided a store in Quezon City where a "secret menu" of illicit vape was offered to its customers. Only legally compliant vape were displayed in its shelves. However, once a customer asks for the availability of illicit vape products, the store will give the customer the secret menu of illicit vape. A bodega hidden behind the store was the stockpile for all of its illicit vape products.
"This 2025, expect that the BIR will file criminal cases against those involved in illicit vape. We know who you are. This includes both large-scale importers and small-scale retailers/resellers. You can expect criminal cases this year" Commissioner Lumagui stated.