Massive crackdown vs. fake PWD IDs set

The Bureau of Internal Revenue (BIR) is set to launch a nationwide crackdown on the sale and use of fake person with disability (PWD) identification cards (IDs) following reports that this tax evasion scheme resulted in over PHP88 billion in revenue losses in 2023.

BIR Commissioner Romeo Lumagui Jr. announced on Thursday that he has instructed agency officials to work closely with other government bodies to curb the misuse of fraudulent PWD IDs. 

Data from a recent Senate investigation revealed significant revenue losses linked to the abuse of benefits meant for legitimate PWDs.

Under the law, PWDs are entitled to a 20 percent discount and exemption from value-added tax (VAT) on certain goods and services. 

However, the system has been exploited by individuals purchasing fake IDs, which are reportedly being sold on streets and online platforms.

“People who sell and use fake PWD IDs are not only committing tax evasion but are also disrespecting legitimate PWDs who genuinely need this support. The law’s intent is to ease financial burdens and improve their well-being, not to provide discounts to the general public,” Lumagui said. He emphasized that the BIR will aggressively pursue those involved in this fraudulent activity.

The BIR is conducting audits on PWD transactions reported by establishments and has mandated businesses to maintain detailed records of sales involving PWDs. 

These records must include the PWD’s name, ID number, type of disability, and the discounts or VAT exemptions granted. The agency will also verify the authenticity of submitted PWD IDs.

Establishments found using fake PWD IDs will face disallowed deductions and assessments for deficiency VAT, along with corresponding penalties and interest. The BIR also warned that it will reject deductions related to illegitimate ID numbers.

To strengthen efforts against the proliferation of fake IDs, the BIR will intensify its collaboration with the Department of Health and the National Council on Disability Affairs to ensure the legitimacy of issued PWD IDs.