BIR, AMLC join forces to combat tax evasion, money laundering

The Bureau of Internal Revenue (BIR) and the Anti-Money Laundering Council (AMLC) have strengthened their partnership to intensify enforcement actions against tax evasion and money laundering in the Philippines.

The collaboration was formalized during a meeting held on August 29, 2024, between BIR Commissioner Romeo D. Lumagui Jr. and AMLC Executive Director Matthew M. David, along with other key officials.

In the meeting, Commissioner Lumagui emphasized the growing sophistication of tax evasion tactics, noting the necessity for interagency cooperation to effectively combat these crimes.

“Tax evaders are now using sophisticated ways of evading taxes and storing their illegal wealth. This interagency cooperation between the BIR and the AMLC will pave the way for future investigations on tax evasion and money laundering. The law is clear, all sources of income, whether from legal or illegal means, are taxable,” Lumagui said.

One of the complex tax evasion schemes highlighted by Lumagui is the use of “Ghost Receipts,” wherein companies with no legitimate business activities issue fraudulent receipts.

These receipts are then purchased by others to illegally reduce their tax liabilities by padding expenses.

This practice, Lumagui warned, poses a significant threat to the integrity of the financial system.

The BIR and AMLC said they are committed to working closely together, leveraging their complementary expertise to pursue violators of tax and anti-money laundering laws.