Higher informant reward to help expose tax evaders, smugglers 

A bill seeking to substantially increase cash rewards for informants is expected to give a major boost to the enforcement capabilities of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), as it aims to motivate the public to expose large-scale tax evasion and smuggling operations, Sen. Jinggoy Ejercito Estrada said Thursday.

Estrada, author of Senate Bill No. 1011, said the existing informer’s reward framework has lost its effectiveness, as outdated caps no longer reflect the magnitude and complexity of major revenue-related crimes.

“Our fight against tax evasion and smuggling depends heavily on information from the public. But people won’t come forward if the law itself limits their protection and their reward,” Estrada said.

Under the proposed measure, informants whose information leads to the discovery of tax fraud may receive a reward of up to ₱10 million or 10 percent of the recovered amount, whichever is lower.

For smuggling cases, the bill allows incentives of up to ₱10 million or 20 percent of the value of seized goods, whichever is lower.

Estrada said offering higher and more realistic incentives would enhance the ability of the BIR and BOC to uncover sophisticated schemes that often rely on insider knowledge, while also strengthening overall revenue collection and enforcement.

The bill also introduces stronger safeguards by mandating strict confidentiality of informants’ identities, imposing penalties for unauthorized disclosure, and barring government officials, employees, and their immediate relatives from claiming rewards.

Only tips that result in the actual recovery of taxes, penalties, or confiscated goods will be eligible for incentives, the measure provides.

“This bill encourages public cooperation in reporting tax cheats and smugglers,” Estrada said.