Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. recently reaffirmed his commitment to supporting the privileges granted to Persons with Disabilities (PWDs) while condemning fraudulent activities surrounding fake PWD identification cards (IDs). This statement came during a joint press conference with the Department of Social Welfare and Development (DSWD) and the National Council on Disability Affairs (NCDA).
The privileges afforded to PWDs are essential for promoting their empowerment, ensuring their inclusion in society, and alleviating the financial burdens often associated with their conditions. The BIR, in partnership with other government agencies, remains resolute in protecting the integrity of tax incentives meant for legitimate PWDs.
“The BIR fully supports all legitimate PWDs. All tax privileges designated by law will be rigorously implemented. However, we will not tolerate businesses that fail to meet the basic documentation and procedural requirements under Revenue Regulation No. 5-2017,” Commissioner Lumagui emphasized.
The Commissioner also expressed grave concern over the rise of counterfeit PWD IDs, which he condemned as a tax evasion tactic that leads to significant revenue losses for the government. In response, the BIR is launching a nationwide crackdown to identify and hold accountable those involved in the production, sale, and use of fraudulent PWD IDs.
Individuals found guilty of these offenses will face criminal charges, along with fines and possible imprisonment.
“The BIR is fully supportive of the DSWD’s unified PWD ID and database program. This initiative will allow the BIR to verify whether tax deductions submitted by businesses are for legitimate PWD transactions. A data-sharing agreement between government agencies will provide a more efficient approach to tackling the tax leakage caused by fraudulent PWD IDs,” Commissioner Lumagui added.
Under Republic Act No. 7277, as amended by RA Nos. 9442 and 10754, establishments that provide the legally mandated 20% discount and VAT exemption to qualified PWDs are entitled to claim these discounts as tax deductions. To legitimately claim these deductions, businesses must follow the documentation and procedural requirements outlined in Revenue Regulation No. 5-2017. Specifically, each sale transaction must include the PWD’s name and PWD ID number.
Additionally, all transactions involving PWDs must be supported by proper documentation, including invoices reflecting the discount provided. These documents serve as proof of compliance with tax laws and regulations.
By adhering to these guidelines, businesses can support the well-being of PWDs, ensure compliance with tax laws, and benefit from legitimate tax deductions.
“We encourage the public to report any manufacturers, printers, sellers, or users of fake PWD IDs. The sale and use of counterfeit PWD IDs is not only an act of tax evasion but also a form of disrespect towards legitimate PWDs. A PWD ID is not just a discount card available to the general public; it represents a discount granted by law to improve the lives of PWDs and ease their financial burdens,” Commissioner Lumagui concluded.
