₧1.3-T worth of fake receipts issued in past 20 years–BIR

By Jasper Emmanuel Y. Arcalas @jearcalas

THE Bureau of Internal Revenue (BIR)

The BIR disclosed that P1.3trillion worth of fake receipts have been issued in the country at least in the past two decades. Based on its estimates, the national government was deprived of at least P370 billion in revenue collections because of the fake receipts, the BIR said.

The BIR explained that it computed the lost revenues from fake receipts using the combined income tax rate of 25 percent and the 12-percent value added tax (VAT) that the firms evaded by using the unscrupulous scheme.

BIR Commissioner Romeo D. Lumagui Jr. said he expects that some of the companies that are currently facing charges because of fake transactions would soon initi- ate settlement with the government.

“It is up to them when they will pay but as far as we are concerned, the cases are there. It is up to them if they will pay but we have a lot of offers already. We are just looking for reasonable offers for payment,” Lumagui said. “But definitely within the year [there will be payments].”

The state tax collector said it arrived at these numbers as it implements its “Run After Fake Transactions,” or “Raft,” program. The BIR said the program is part of its measures in hiking the state’s overall VAT collections, which currently stands at only 40 percent.

The government is losing about P540 billion in uncollected VAT, according to the BIR, which is enough to feed five million families for a year or build 11,000 schools. (Related story: https://businessmirror. com.ph/2023/05/31/vat-drivemissing-%E2%82%A7539b-dof/)

The BIR said it is beefing up its data analytics unit to further strengthen its “Raft” program. It explained that it is capacitating its data analysts who shall serve as “vanguards” against fake transactions.

The unit would be equipped with the necessary tools, both hardware and software, to fight against the criminal syndicates behind the fake transaction scheme, according to the BIR.

The BIR announced last month it filed criminal charges before the Department of Justice against CHG Global Inc., CHK Steel Inc. and Gammon Resources Inc. for alleged use of fake receipts. (See https://businessmirror.com.ph/2023/06/22/ bir-sues-firms-allegedly-tradingin-fake-receipts/) tinue to benefit and the government will help them save money.”

In March of this year, the BIR filed charges against nine individuals running “ghost corporations” that had cost the government billions in tax losses, according to the Department of Finance.

Very responsible

SALCEDA said the reforms guarantee three things: “sure salary increase; sure indexation of pensions; and, sure funding for the pension system.”

He added that President Ferdinand R. Marcos Jr. “has already helped address the problem by being very responsible about any salary increase for the MUP, before a viable pension system is in place.

“And with this reform, his government will solve the pension problem for decades to come,” Salceda said. “This solution also enables a salary increase for the MUP since we can control its fiscal consequences on the pension system.”

Finance Secretary Benjamin E. Diokno earlier announced that Marcos has approved decreasing the contributions of the government to the pool of funds for the pension of MUPs, among other reforms to avoid a fiscal collapse.

For this year alone, Diokno said the government would spend more than P120 billion (roughly $2.21 billion at current exchange rates) to fund the pension of those serving under several state institutions.

The latter are: the Armed Forces of the Philippines; the Bureau of Jail Management and Penology; the Bureau of Fire Protection; the Philippine National Police; the Philippine Public Safety College; the Philippine Coast Guard; and, the Bureau of Corrections.

Under the current proposal, the fund will be managed by the Government Service Insurance System (GSIS). An oversight committee shall be formed composed of the Secretary of Finance, the Secretary of Budget and Management, the Executive Secretary and the President and General Manager of the GSIS as ex-officio member and representatives from the MUP services. Jovee Marie N. Dela Cruz

THE Land Bank of the Philippines (LBP) saw its net income in the first half of the year growing by nearly 3 percent to P20.9 billion driven by stronger loan portfolio and investment returns.

A statement issued by the LBP last Wednesday read that the staterun lender surpassed its net income target for the first six months of the year by 19 percent or by around P3.3 billion.

The latest bottomline of the bank is nearly 60 percent of its P35 billion

THE Bureau of Internal Revenue (BIR) announced recently that Commissioner Romeo D. Lumagui Jr. has categorically declared the mandatory nature of the benefits given to senior citizens and persons with disabilities (PWDs) for qualified purchases made online or through mobile applications. This is stated in Revenue Regulations 8-2023 issued by the BIR Commissioner.

The RR 8-2023 further stated that the signature of the senior citizen and/or PWD is not required if the qualified purchase was made online or through mobile applications. The Identification Card number of the senior citizen and/or PWD should still be provided, read a statement issued by the full-year net income target, according to the LBP.

The bank attributed the growth in its net income to the double-digit rate expansion of its earnings from loans and investments, which it disclosed rose by 49.8 percent and 43.5 percent, respectively.

The bank added it has expanded its total assets by 7.14 percent to P3 trillion from the P2.8-trillion recorded in the first half of last year.

“The increase in assets was driven by deposits amounting to P2.7 tril-

BIR last Wednesday. “Online platforms should recognize the mandatory discounts given to Senior Citizens and Persons with Disabilities.

The BIR has issued RR 8-2023 to this effect. The signature of the senior citizen and/or PWD is not needed if the purchase is made through online means. The senior citizen and/or PWD Identification Card number should still be provided,” Lumagui was quoted in the statement as saying.

RR 8-2023 was issued by the BIR Commissioner “in furtherance of his goal to provide excellent taxpayer service,” the BIR statement read. “This issuance is a step towards making the BIR a service-oriented agency, not merely a goal-oriented one.” lion, which expanded by 9.2 percent year-on-year,” it said.

The LBP said its capital also expanded by 14.43 percent to P236.3 billion from P206.5 billion last year. It added that its return on equity “remains at a healthy level” of 13.82 percent.

“LBP consistently ranks among the top universal banks in the country in terms of assets, deposits, loans, and capital,” the lender stated. It cited that global credit ratings agency Fitch Ratings Inc. recently upgraded the Bank’s outlook to “stable” and affirmed its Long-Term Issuer Default Ratings (IDRs) at BBB. “We are very much on track in meeting our financial targets for the year, as income from loans and investments continue to expand,” LBP President and CEO Lynette V. Ortiz was quoted in the statement as saying adding they’re “in a prime position to sustain our intensified support to the agriculture sector and other key industries.”

Jasper Emmanuel Y. Arcalas