What is a ghost receipt?
Ghost receipts are fake invoices with no actual transactions. They are used to reduce tax liabilities by claiming false deductions and input VAT. This defrauds the government of taxes.
Fronts
Buyer – Imprisonment of 6-10 years
Seller – Imprisonment of 6-10 years
CPAs – License revocation for abetting and advising their clients to avail of a tax evasion scheme. Imprisonment of 6-10 years.
This March, the BIR Philippines launched Run After Fake Transactions (RAFT), the first-ever campaign program against buyers, sellers, and certified public accountants (CPAs) who profit from propagating a culture of tax evasion using “ghost receipts.”
The BIR formed the National Task Force – RAFT to combat ghost receipts and crack down on businesses using fraudulent invoices and receipts.
The Program is a critical step towards ensuring that tax laws are applied fairly and justly, contributing to nation-building and improving the lives of Filipinos.
Read more:
https://www.bir.gov.ph/images/bir_files/internal_communications_1/Media%20release/PR20MAR2723.pdf
You may want to read: