THE Bureau of Internal Revenue (BIR) has partnered with the Anti-Money Laundering Council (AMLC) to enhance enforcement efforts against tax evasion and money laundering.

"Tax evaders are now using sophisticated ways of evading taxes and storing their illegal wealth," BIR chief Romeo Lumagui Jr. said in a statement on Monday.

"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," he added.

Lumagui stated that the BIR and AMLC will collaborate closely to pursue individuals violating tax and anti-money laundering laws.

He noted that the two agencies are uniquely positioned, with their expertise in apprehending tax evaders and money launderers complementing each other.

The tax chief explained that a common tax evasion tactic involves using "ghost receipts."

"Buyers of these receipts use it to lower their tax liabilities illegally because the sellers or issuers of such receipts do not have legitimate business activities," Lumagui said.

"The seller or issuers are merely companies that were created so their receipts can be used to pad the expenses of buyers, thereby creating a scheme that directly endangers the integrity of our financial system," he added.

Lumagui estimates that the government is losing at least P370 billion due to fake transactions, based on a 25-percent income tax rate and a 12-percent value-added tax rate.

Read The Rest at :