BIR to run after erring accountants

At a glance

  • The Bureau of Internal Revenue (BIR) says the agency will be filing cases against accountants who have blatantly violated the country's tax laws.

  • BIR Comm. Romeo Lumagui Jr. says the bureau sought for the revocation of the professional license of a Certified Public Accountant who profited from "ghost" or fake receipts.

  • Lumagui adds the accountant is also criminally charged before the Department of Justice, and is facing prison time.

The Bureau of Internal Revenue (BIR) has warned accountants against tax dodging, urging them to ensure their clients are paying the correct taxes to the government.

In a statement Tuesday, March 21, BIR Commissioner Romeo D.  Lumagui, Jr. said the bureau’s enforcement activities will be aggressive and fearless against accountants who have blatantly violated the country’s tax laws.

He warned that the BIR would not only seek for the revocation of their professional licenses, but also file criminal complaints against Certified Public Accountants (CPA) who examined, certified, and signed fraudulent financial documents.

In particular, Lumagui noted that the tax agency will run after accountants that allowed the taxpayers to profit from “ghost” or fake receipts.

“We expect you, accountants, to do your part in ensuring that all your clients are paying the correct taxes. You should not be the ones advising them to evade payment of taxes,” Lumagui said.

On Tuesday, the BIR filed an administrative complaint against an accountant involved in the “Ghost Receipts” syndicate.

Lumagui said the BIR has now a list of all the buyers and sellers of ghost receipts, including the accountants that allowed the taxpayers to evade taxes.

“May the filing of this case and revocation of the CPA license serve as a reminder to all the accountants of the oath they undertook and sworn. I am warning all of you, I will not tolerate these kinds of fraudulent schemes happening under my watch,” Lumagui said.

“I will make sure that all tax dodgers including their respective accomplices will be punished accordingly,” he added.

Last March 16, the BIR filed criminal complaints against four corporations before the Department of Justice (DOJ) in violation of National Internal Revenue Code causing the government to lose an estimated P25.5 billion of taxes.

They were identified as “ghost” corporations having no legitimate business activity and were established primarily for the purpose of selling fictitious sales invoices and ghost receipts to their buyers.

The accountant is now criminally charged before the DOJ, and is facing prison time, Lumagui said.

He is also administratively charged before the Professional Regulation Commission, and is facing the revocation of his license, the BIR chief added.