The Bureau of Internal Revenue (BIR) and the Anti-Money Laundering Council (AMLC) are working together to strengthen enforcement activities against the crimes of tax evasion and money laundering.
In a statement, the BIR said it met with AMLC officials last August 29 to tackle interagency cooperation and coordination between the two agencies.
“Tax evaders are now using sophisticated ways of evading taxes and storing their illegal wealth,” BIR commissioner Romeo Lumagui Jr. said.
“This interagency cooperation between the BIR and the AMLC will pave the way for future investigations on tax evasion and money laundering,” he added.
The BIR chief pointed out the law is clear: all sources of income, whether from legal or illegal means, are taxable.
The tax agency said it will work hand-in-hand with AMLC to run after criminals engaged in violations of tax and anti-money laundering laws.
As an example of a tax evasion scheme, the BIR cited the use of 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.
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.
