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The Philippine government's tax service has taken decisive action against a trading company accused of using counterfeit receipts to evade taxes.

Philippine Government Sues Company Over $3.4 Million Tax Fraud Scheme Involving Fake Receipts

According to a report by PhilStar, the Philippines' Bureau of Internal Revenue (BIR) has filed criminal charges against the company's corporate officers and accountant for allegedly using fake receipts amounting to a staggering 200,577,697.25 pesos, equivalent to approximately $3.4 million.

The charges stem from a complaint filed by the BIR before the Department of Justice, highlighting the company's purported inclusion of fake receipts in its "cost of sales" for the tax year 2021.

Notably, the BIR revealed that the supplier of these fraudulent receipts is linked to the accountant's relatives, stressing the deceitful nature of the alleged tax evasion scheme.

Commissioner Romeo Lumagui Jr. of the BIR condemned the fraudulent activities, emphasizing, "The use of fraudulent receipts, whether it be fake receipts or ghost receipts, is tax evasion."

The charges filed against the trading company violate several sections of the National Internal Revenue Code (NIRC) of 1997, including attempts to evade tax, willful aiding and abetting in the commission of the crime, failure to supply correct and accurate information, knowingly making false entries or fictitious names in the books of accounts, and violations related to the printing of receipts or invoices.

If found guilty, the accused may face imprisonment of two to six years and a fine of not less than 10,000 pesos ($174).

Commissioner Lumagui issued a stern warning: "The BIR will not overlook business owners who conspire with their accountants to avoid paying the correct taxes."

In Other News

Meanwhile, in related news reported by Reuters, the arrest of Roger Ver, an early investor in bitcoins known as the "Bitcoin Jesus," on charges of tax evasion reminds us of the global efforts to combat financial crimes.

Ver's alleged evasion of at least $48 million in taxes highlights the importance of compliance with tax regulations, irrespective of one's stature or involvement in emerging technologies.