The Bureau of Internal Revenue (BIR) has revealed that the use of fake invoices and receipts by certain business establishments has resulted in an annual loss of up to P546 billion in value-added tax (VAT) for the government. BIR Commissioner Romeo D. Lumagui Jr. made the disclosure during the 119th anniversary celebration of the bureau at the Philippine International Convention Center in Pasay City. Lumagui stated that the losses amount to approximately 40 percent of the yearly tax revenue from this source. The tax evasion scheme has been ongoing for decades, and if income tax payments are also considered, the losses could be even more substantial, reaching trillions of pesos. The fraudulent practice also allows users of fake sales papers to significantly reduce their income tax payments and even claim VAT refunds. Lumagui explained that these receipts and invoices are produced by ghost corporations that do not conduct any legitimate business but sell these documents to profit-seeking merchants to evade taxes. Lumagui pledged to continue extensive enforcement activities against buyers of these sales papers. As part of their efforts, the bureau recently filed tax evasion charges totaling P18 billion against the owners of three major companies and their accountants who were allegedly caught using these unregistered sales documents before the Department of Justice. Lumagui said this marked the first serious campaign against distributors of such fraudulent papers in the bureau's history.