On December 23, 2024, the Department of Education (DepEd) issued DepEd Order No. 022, s. 2024 , providing comprehensive guidelines for class and work suspension during disasters and emergencies. This order reaffirms DepEd’s commitment to ensuring the safety and well-being of learners, teachers, and personnel while emphasizing the importance of learning continuity during such events. Key Highlights of DepEd Order No. 022, s. 2024 1. Rationale DepEd upholds its dual mandate of safeguarding the welfare of learners and personnel while maintaining academic continuity. This policy recognizes: The vulnerability of disaster-prone areas. The necessity of adopting flexible learning modalities, such as modular or online learning, during in-person class suspensions. The importance of balancing safety and academic progress. 2. Scope The guidelines are mandatory for: All public schools. DepEd-operated Community Learning Centers under the Alternative Learning System (ALS). Private schools and educati...
According to estimates, the Philippines is losing a staggering ₱500 billion annually to tax evasion. In response to this alarming situation, Commissioner Romeo Lumagui of the Bureau of Internal Revenue (BIR) has implemented several reforms and programs aimed at combating tax evasion, even in the early stages of his term.
BIR’s Enforcement Operations
The BIR has launched several enforcement operations, including the Run After Fake Transactions (RAFT) and Run After Tax Evaders (RATE) programs. These initiatives have proven to be successful, leading to numerous raids and arrests for various violations of the Tax Code.
In 2023, under its RAFT program, the BIR filed cases against sellers and buyers of fake receipts, with estimated tax liabilities amounting to ₱45 billion. For the RATE Program, a total of 221 cases were filed, with estimated tax liabilities of ₱13.24 billion.
BIR’s Information Campaign
Aside from enforcement activities, the BIR is also active in an information campaign to educate taxpayers about their tax obligations. The BIR intensifies these campaigns during the entire income tax return filing season, which culminates on its April 15 deadline. Taxpayers are constantly reminded of their responsibility to pay the right taxes on time to avoid being labeled or prosecuted as tax evaders.
Legal Consequences of Tax Evasion
Under Sections 254 and 255 of the Tax Code, as amended, the State can file a criminal case for tax evasion against any taxpayer who willfully attempts in any manner to evade or defeat payment of any tax imposed by the Tax Code. The penalty includes fines of up to 10 million pesos and imprisonment for up to 10 years.
The crime of tax evasion is committed by a taxpayer who knowingly and willfully files a fraudulent return with intent to evade and defeat a part or all of the tax. According to the Supreme Court ruling in People v. Mendez (G.R. Nos. 208310-11 & 208662, March 28, 2023), it must be proven that: 1) the accused is a registered taxpayer; 2) the source of income is proved; and 3) the income was not declared in the corresponding returns.
Tax evasion connotes the integration of three factors: 1) the end to be achieved, i.e., the payment of less than that known by the taxpayer to be legally due, or the non-payment of tax when it is due; 2) an accompanying state of mind which is described as being “evil,” in “bad faith,” “willful,” or “deliberate and not accidental”; and 3) a course of action or failure of action which is unlawful.
The Role of Accountants in Tax Evasion
Several taxpayers rely solely on their accountants, raising the question of whether the defense of good faith and faithful reliance upon such accountants can hold up against a charge for tax evasion.
The answer, according to the Supreme Court in the case of People v. Mendez (G.R. Nos. 208310-11 & 208662, March 28, 2023), is no. Mere reliance on one’s accountant without inquiring and ensuring that the Income Tax Return (ITR) filed with the BIR reported all income is a violation of Section 255 of the Tax Code. This neglect constitutes willful blindness, defined as the deliberate avoidance of knowledge of a crime, especially by failing to make a reasonable inquiry about suspected wrongdoing despite being aware that it is highly probable.
The crime of tax evasion continues to be a pernicious and injurious threat to our society by depriving the State of its collection of taxes. By persistently prosecuting tax evaders, the BIR sends a clear deterrent to would-be violators, encouraging them to instead faithfully comply with their obligations to pay their taxes responsibly.
The BIR’s ardent and principled approach towards educating taxpayers while apprehending tax evaders continues to yield results in the form of record high collections and improved tax compliance among taxpayers in the country.
With these pronouncements, taxpayers should be proactive towards understanding their tax obligations by knowing how and when to pay the correct amount of taxes.
This article is based on the weekly newspaper column “Let’s Talk Tax” of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.
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