BIR, SEC partner to combat tax evasion

The Bureau of Internal Revenue (BIR) and the Securities and Exchange Commission (SEC) have signed a Memorandum of Agreement (MOA) and Data Sharing Agreement (DSA) to enhance their efforts in targeting major corporate tax evaders.

The agreements, signed on July 17, 2024, aim to streamline information exchange between the two agencies, facilitating more effective investigations and audits.

“The BIR will maximize our partnership with the SEC by running after big-time corporate tax evaders. This sharing of information between the agencies will be used to investigate large-scale tax fraud activities perpetrated by companies such as that of ghost receipts and corporate tax evasion,” BIR Commissioner Romeo D. Lumagui Jr. said.

A key element of this collaboration is BIR’s access to the SEC’s Swift Corporate and Other Records Exchange (SCORE) Protocol.

This online portal provides the BIR with immediate access to corporate documents of any SEC-registered taxpayer, which is essential for conducting thorough tax fraud investigations and audits.

The MOA and DSA also promote the sharing of information to benefit the policies and programs of both agencies.

The BIR has expressed its full support for the SEC’s digitalization initiatives, recognizing the importance of modernizing systems to improve efficiency and transparency.