The Bureau of Internal Revenue (BIR) headed by Commissioner Romeo D. Lumagui Jr., joined the filing today, February 15, 2024, of fourteen (14) Criminal Information against the five (5) Corporate Officers and Accountant of Ghost Corporations, namely, Decarich Supertrade, Inc. and Redington Corporation. The Criminal Information are filed before the Regional Trial Court and Metropolitan Trial Court of Quezon City.
The Department of Justice (DOJ), after preliminary investigation, found probable cause that these corporations together with 5 corporate officers and accountant committed crimes for Tax Evasion (Section 254, NIRC), Failure to File Tax Returns (Section 255, NIRC), Failure to Supply Correct and Accurate Information in the Tax Returns (Section 255, NIRC), and Making False Report in the Audited Financial Statements (Section 257 (A)(2), NIRC), for taxable year 2021.
Decarich Supertrade Inc. and Redington Corporation belonged to the first batch of ghost corporations/sellers whom the BIR filed criminal complaint before the DOJ last year. To recall, the BIR released a strong message against this syndicate using fictitious receipts that it is serious in putting these fraudulent activities into halt since the government is losing an estimated total revenue amounting to Php25.5 Billion, for taxable years 2019-2021 alone.
The BIR already filed 23 criminal complaints against Sellers and Buyers of Fictitious Receipts/Transactions under the Run After Fake Transactions (RAFT) Program of the BIR. Just this month, a criminal case was filed before the DOJ against a popular cosmetic brand, Ever Bilena Cosmetics, for engaging into highly fictitious transactions with Ghost Companies amounting to Billions of Pesos. The BIR, after investigation, found that Ever Bilena claimed fake receipts/transactions with Decarich Supertrade Inc. From Decarich alone, Ever Bilena was able to evade payment of taxes amounting to Millions of Pesos. The practice is deceitful and punishable under Sections 254, 255, 267, and 257 of the Tax Code, as no transactions actually happened and the purchases were based on non-existing goods and services of Ghost Corporations.
“The BIR under the Run After Fake Transactions Taskforce will not hesitate to file criminal cases against big corporations/syndicates that sell, buy, or use Ghost Receipts”, Commissioner Lumagui stated.
This is a constant reminder to all crooked corporations and Certified Public Accountants that the BIR is serious in filing civil and criminal actions against them.
The fourteen (14) Criminal Information are the first batch of cases filed in the Philippine Courts against ghost corporations/sellers under the RAFT Program of the BIR.
