The Bureau of Internal Revenue (BIR) has placed under tax fraud investigation Pharmally Pharmaceutical Corporation and 75 other companies with coronavirus disease (COVID-19) supply contracts with the government.

This was disclosed by BIR Commissioner Caesar R. Dulay as he submitted to the Senate "23 tax records" the latter sought in connection with its inquiry into the controversial P8.7 billion COVID-19 supply contracts that Pharmally bagged.

The BIR chief said he formed a special team of regional directors, district officers, tax fraud, and prosecution officials to to verify the tax compliance of the 76 firms which have secured COVID-19 contracts with the Department of Health (DOH).

The task force is headed by Deputy Commissioners Marissa Cabreros for legal group and Arnel SD. Guballa for operations.

"Just like any other taxpayer, we will verify the tax compliance of these firms and file the appropriate criminal complaints against those found to have violated the Tax Code," Dulay said.

He said a total of 115 Letters of Authority have been issued to audit the financial records of the companies, which names were not disclosed.

Dulay said tax records were submitted to the Senate' blue ribbon committee to complete its investigation into the "2020 Commission on Audit report, especially the procurement of the DOH related to COVID-19."

"As long as within our powers, the BIR will cooperate with the Senate investigation about the alleged anomalous government procurement deals for the country's response to the pandemic," Dulay said.