The Bureau of Internal Revenue (BIR) is launching a nationwide crackdown on fake Persons with Disability (PWD) identification cards to protect legitimate PWD privileges and prevent government revenue losses.
In a statement, BIR Commissioner Romeo D. Lumagui Jr. expressed that the bureau maintains a strong stance against fraudulent practices, highlighting the agency’s dedication to upholding tax incentives intended for PWDs.
Lumagui noted that the BIR will fully implement all tax privileges granted by law to legitimate PWDs, while strictly enforcing documentation requirements under Revenue Regulations (RR) No. 5-2017 for businesses claiming tax deductions.
He added that the proliferation of fake PWD IDs is a serious concern, constituting a tax-evasion scheme that deprives the government of substantial revenue.
The BIR is initiating a nationwide effort to identify and prosecute individuals involved in these illegal activities, with those found guilty facing criminal charges, fines, and imprisonment.
Lumagui also said the BIR supports the Department of Social Welfare and Development’s (DSWD) unified PWD ID and database program, which aims to streamline the verification of legitimate PWD transactions.
He added that a data-sharing agreement between relevant government agencies could enhance the fight against tax leakage caused by fake PWD IDs.
Under Republic Act (RA) No. 7277, as amended by RA 9442 and 10754, establishments providing the mandated 20-percent discount and value-added tax (VAT) exemption to qualified PWDs can claim these discounts as tax deductions, provided they adhere to the documentation and procedural requirements outlined in RR 5-2017.
Proper documentation, including invoices reflecting the PWD's name and ID number, is essential for claiming tax deductions, Lumagui noted.
He added that these documents serve as evidence of compliance with tax laws, ensuring that businesses support PWD welfare while adhering to regulations.
The BIR encourages the public to report manufacturers, printers, sellers, and users of fake PWD IDs, as these activities disrespect legitimate PWDs and undermine the purpose of legal discounts designed to ease their financial burdens.