There will be no sacred cows in the Bureau of Internal Revenue’s (BIR) crackdown on tax evaders, as it hailed the Department of Justice (DOJ) for filing a ₱176 million tax evasion case against Hilmarc’s Construction Corporation—one of the country’s largest government contractors—for using ghost receipts to illegally reduce its tax obligations.
In a post in his official Facebook Page, BIR Commissioner Romeo Lumagui Jr. said that “the BIR has repeatedly warned the public not to use ghost receipts. We will file tax evasion charges against you. You will be arrested. Even if you are one of the largest government contractors in the country.”
“The BIR is grateful to the DOJ for its steadfast commitment in our war against Ghost Receipts. Together, we will make sure that under this administration, this tax evasion scheme will end.”
The DOJ has filed eight criminal charges before the Court of Tax Appeals (CTA) against Hilmarc’s and its corporate officers—Efren M. Canlas, Robert B. Henson, and Cristina Elisse F. Canlas—for violations of Sections 254 and 255 of the National Internal Revenue Code (NIRC). Arrest warrants are expected to be issued soon.
“The BIR’s war against ghost receipts led the way in achieving our DBCC collection goal for 2024.”
The charges stem from an investigation by the BIR’s Run After Fake Transactions (RAFT) Task Force, which uncovered anomalies in Hilmarc’s tax filings for 2013 and 2014. The construction firm allegedly used fraudulent receipts from ghost companies Everpacific Incorporated and Unimaker Enterprises, Inc. to illegally claim deductions in its Income Tax Returns and record false input taxes in its VAT returns.
Aside from criminal prosecution, Hilmarc’s also faces a staggering tax liability of ₱176,363,284.77.
The case marks a major milestone in the BIR’s aggressive campaign against tax evasion, which has contributed to a record-breaking increase in VAT collections and helped the agency meet its DBCC collection goal for 2024.
According to Lumagui, “the BIR’s war against ghost receipts led the way in achieving our DBCC collection goal for 2024. We experienced a historic increase in VAT collection because of our RAFT task force.”
The BIR chief issued a stern warning to government contractors, whom he said have an obligation to pay the proper taxes given that their earnings come from the taxes of Filipino citizens.
“Government contractors, who are profiting from taxes being paid by dutiful and compliant taxpayers, should not be using ghost receipts,” stressed Lumagui.
“You are already earning profit from contracts funded by tax collections. The least you can do is be compliant with your tax obligations, and not evade taxes through ghost receipts.”
