Aug 30 2013

VAT Evasion and Rewards in the Philippines

Tax evasion appears to be common in the Philippines, along with most other countries. However, I am making a point on this one, as I feel that Tax evasion that hurts so many people who are classed as being in REAL poverty, is WRONG.

The Philippines needs more tax revenue to help bring it forward and out of the poverty level, experienced by so many of its population.

Those in the Middle and Upper Classes who create and use Tax Avoidance to better themselves at the expense of the poor, should not be protected from any prosecution.

Philippines Tax Evasion and Rewards The Bureau of Internal Revenue [BIR] has schemes in place to make it beneficial for individuals to report any tax evaders and get a reward for doing so.

This reward is 10% of the amount that the company has to repay in any tax payments avoided, and any penalties incurred.

Why should people report tax evaders?

These three scenarios allow YOU to reason out for yourself, why or why not, YOU should report these people.

This is what SHOULD happen.

The business charges you the 12% VAT, and passes it on to the Government for use in public spending (Education, Roads, Hospitals, etc) for the benefit of ALL Filipinos.

This is what sometimes happens:

The business charges you the 12% VAT, but then keeps it for themselves, without forwarding it for public spending purposes (Tax Evasion).
The result:  The business owner profits at the expense of the Filipino general population.

This is what could happen:

The business charges you the 12% VAT, but then keeps it for themselves, without forwarding it for public spending purposes (Tax Evasion).  YOU report them, and the BIR prosecutes and collects unpaid taxes and fines.  90% of these funds go into the public funds for spending on public needs, and 10% goes to you as a reward (Maximum 1 million pesos).

The result:  The business owner ends up paying correctly, but with penalties; the Filipino general population get 90% of what they had been robbed off; and YOU get 10% for helping to rectify the situation.

Remember this:

Remember, this 12% VAT is public money, belonging to the Filipino people and to be spent for the benefit of the Filipino Population.

Those who say it is OK to steal it, are really saying: it is OK to steal from the Filipino Population, ie: YOU !

How much is being stolen by Tax Evasion?

If we assume there are 1 Million businesses, and every business steals just 24 pesos per year, in this form of tax evasion,  then the Filipino Population loses out on 24 Million pesos of public spending works. That is JUST 24 peso per year each business !!

What if they steal JUST 24 pesos per day each… That could add up to 8.76 Billion pesos per year…

That is getting very close to the 10 Billion, that Janet Napoles is being accused of stealing, from these same Public Funds.

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    • Oter on January 21, 2017 at 9:46 pm
    • Reply

    Paano po ako makakapagsumbong sa BIR with regards sa taxpayer na Hindi nagbabayad ng tamang buwis … kumikita sya ng 20M a year and then 2k Lang po a month ang binabayad nya sa BIR … let me know the process or the step

    • zen yao on December 12, 2016 at 11:31 am
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    pls try pumasok sa g resort at gen tri arnaldo st. cavite. kita mo pasok mga minors at pedopile na bakla 3 kasama elem boys.walang resibo at walang safety inssfection pool nila.. mga more than 15yrs ng di nagbabayad ng tax.. unfair sa taxpayer gaya namin. bir its now your turn to act..pag summer and dec mga 300k per day kita neto.len gedah may are neto.

    • Melito on October 10, 2016 at 10:36 pm
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    I just want to report a company na hindi na nga nagbabayad ng tax inaabuso pa ang karapatan ng manggagawa walang allowances pag walang byahe tapos delay pa magpasahod saka sibak ng sibak ng trabahador kahit walang basis to fired out walang sss pag ibig or watsoever

    Company name Tomo gold trucking
    Owner liam banzon
    Monthly income 100k per truck a month
    No ltfrb and business permits
    Address san jose batangas infront of wincom
    Please do some necessary actions and sanctions

    • April Arante on August 29, 2016 at 10:11 pm
    • Reply

    Myrna M. Paterno
    Nestor Paterno
    Dom Daniel M. Paterno

    Level Up construction and supply inc
    Topline Truck and Jeepney Parts Center (San Mateo and Edsa Caloocan Branch

    Level up : 2nd floor 3bb Bldg. Kamuning QC
    Topline Edsa caloocan : 532 Edsa cor. Biglang Awa Caloocan City
    Topline San Mateo : 170 Gen Luna St. Ampid 2, San Mateo Rizal

    Topline estimated earnings per month is 500k to 1M a month for each branches

    Level Up cons. estimated earnings per month is 5M and depends on projects that it handles

    They are not remitting proper tax and also ive discovered that they have a contact person inside BIR so that they can evade tax payment.

    They are submitting Fake FS (PLEASE TAKE NOTE OF THIS) and signed by a CPA named Dianne Madrid whom a niece of Myrna Paterno. The company also uses Only delivery receipts and not Sales Invoices so that if ever the BiR will inspect them, their invoices only declare small earnings.

    • mr. k on March 2, 2016 at 6:55 pm
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    kyp enterprises philippines located at 702 pioneer highalands north madison st. mandaluyong city .
    is a korean based company here in the philippines. the problem is that instead of issuing original receipt to customers they give fake receipt from raon. may i ask what kind of case they are going to face about it. aside from that they manage to hire an accountant to alter the documents before the deadline of filing. i have the sample of fake receipt and also they are not valid to use the singers karaoke song because it has no licensed to use as public domain. some of the sample of the company is the SATURNO MUSIC, AND MANY OTHER LOCAL RECORDING COMPANIES HERE.thank you

    • jimpol on February 28, 2016 at 11:39 pm
    • Reply

    Guillermo Tabligan / PRIMIA IT SOLUTIONS #18 Marcos Street, Poblacion, Pandi, Bulacan
    Php 1.5M

    Not issuing and refusing to issue official receipts, no accounting books, not duly registered, no proper business registration, no BIR SIgnage.

    • MR. AP on January 22, 2016 at 2:44 pm
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    Good Afternoon i hope that this report will read by BIR, Ire-report ko lang si MR. ANTONIO V. AGUIRRE owner of FUGELMAN SERVICES PROVIDERS, INC. former TCS MANPOWER SERVICES PROVIDERS, INC. located at unit 803 primeland tower, madrigal business park alabang muntinlupa city, MR. ANTONIO AGUIRRE ay may kasong tax evasion sa BIR sa hindi nya pagbayad ng 44 million tax noong TCS MANPOWER SERVICES pa ang pangalan kaya nila pinalitan ang TCS ng FUGELMAN ngayon para makatakas sa kaso pero kami ang napipirwisyo hindi kami maisyuhan ng 2316 ng maayos hanggang ngayon wala pang ginagawang aksyon ang address ng bahay ni MR. ANTONIO AGUIRRE ay sa 8 maroon cove Ayala Southvale Village Sonera Almanza 2 Las Pinas City. Ang ginagawa nila ngayon ay gumagawa sya ng mga dummy person para hindi sya mahuli na nagooperate parin sya kumikita sya sa loob ng isang taon ng halos 200M ito ay isang manpower agency local base. Sana maaksyunan nyo ito ng maaga at baka hindi na mabawi ang tax na dapat ay para sa gobyerno, Salamat po

    • R on August 10, 2015 at 4:49 pm
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    I would like to report Spot On Marketing Services for tax evasion. The company produced shows in Hong Kong, Dubai and Abu Dhabi but failed to disclose it to BIR.

    • roger on July 14, 2015 at 9:14 am
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    the owner of an apartment with 7 doors for rent and 1 commercial space for rent is just filing and declared to BIR only 2 units of its apartment. the rest of the units and the commercial space is not being taxed. the address is 3173 national highway corner makiling subd., anos los baños, laguna.

    • anonymous on June 16, 2015 at 1:16 pm
    • Reply

    mesage nyo po ako dyan at ibibigay ko lahat ng info regarding s mga hindi na report na sales since 2010 pa po.. pati email nila ibibigay ko sa inyo para mapatunayan ko yung mga p.o nila na na deliver at hindi na report

    • report on May 20, 2015 at 3:38 am
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    gusto ko mag sumbong tungkol sisang kumpany n yearly nag papaa ng inventory stocks s BIR pero hindi nman totoo lhat ng presyo ang pinapasa nila. ginagawa n po nilaito since 2008 knino at paano po mgiging sekreto ang pagsumbong ko s company n yon. kapag nag check nga po kyo ng inventory stock nila kulang at ung ibang nkalagay s inventory sheet n subbmit s inyo ay wala s bodega nila. gusto ko po muna sna ma sure kungmay rewards n mkukuha at papaano ko mkukuha ng hindi n lalaman ng kumpanyang ini report ko po s inyo ang aking pag kakakilanlan

    • CS on March 11, 2015 at 7:30 am
    • Reply


    I really don’t know how to start this email and I hope it will be sent the proper department. I am a visitor to your country. I come here almost every two or three months to see my girlfriend. With that I have become fairly familiar with what is right and what is wrong here. Sunday I had the misfortune of coming across a long term tax evader.

    Early on Sunday we went to what I know as Borromeo Beach here in Talisay City Cebu. I had the misfortune to come across the most belligerent women I have ever met in my life. I went to a small Nipa hut store on the beach. Well I will not bore you with what happened but I was threatened be killed by this woman and just after her threat a man walked up and made sure I saw a gun he was carrying.

    The reason for her threat was, I guess a question I asked her. I own a business in California in the US. I know there are rules both here and where I come from that require all my business licenses to be in plain sight. She didn’t have any license showing anywhere in her small store. I made the mistake of asking her about the missing licenses and that’s when she started threatening to kill me. She told me she didn’t have to have any license and she was on private property so she didn’t have to have obey any rules or pay anything to anyone since the government was not allowed on this property and they couldn’t do anything about it.

    I was both shocked and afraid for my life so I left her store area as fast as I could after seeing that man in an old white tank top T-Shirt carrying that gun walking in my direction. Before leaving the beach I did stop at another store there and asked about her. I was told she rented the space like everyone else but she tries to tell everyone else there how she can do anything she wants to do. They also told me that woman causes almost all of the problems on the beach and brags she can do anything she wants and nobody would dare to stop her. I also found out that the little store she operates has been in business for well over two years. They went on to say they think she was in business there for over four years but they are not really that sure because there were not there at that time.

    Again I know from my visits here without any BIR permit she has not been paying any taxes. I can only wonder how much she should have paid in those missing past tax payments. I am sure she hasn’t kept any records so if you look at her business you would have to look at how her sales are and then guess from there. I also was told that I you want to see her at the busiest have someone do a surprise visit on Easter Sunday. They claim there will be over 10,000 people visiting the beach on that day. From my visits to that beach in the past I can tell you that it is very slow there now. When Easter comes that is when it is busy all the time. During your summer it stays very busy and is the busiest on the weekends.

    If there is any reward please see to it the reward is given to the Philippine Red Cross.

    A very upset and frightened visitor,


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