Wazzup Pilipinas!?
The Philippine government has intensified its crackdown on tax fraud as the Department of Justice (DOJ) formally filed criminal charges against Hilmarc’s Construction Corporation, a major government contractor, over its alleged involvement in a massive tax evasion scheme. The charges, filed before the Court of Tax Appeals (CTA) on February 26, 2025, stem from the Bureau of Internal Revenue’s (BIR) relentless efforts to eradicate the use of ghost receipts—fraudulent invoices used to manipulate tax obligations.
Hilmarc’s Faces Criminal and Civil Liabilities
The DOJ’s findings, following an extensive BIR investigation, revealed that Hilmarc’s and its corporate officers—Efren M. Canlas, Robert B. Henson, and Cristina Elisse F. Canlas—engaged in fraudulent transactions by using fake receipts from Unimaker Enterprises Inc. and Everpacific Incorporated. These receipts were falsely declared as legitimate business transactions, allowing Hilmarc’s to claim undue input tax credits in their Value-Added Tax (VAT) returns and inflate expenses in their Income Tax Returns (ITRs).
As a result, the DOJ charged Hilmarc’s and its officials with violating:
Section 254 (Attempt to Evade or Defeat Tax)
Section 255 (Failure to Supply Correct and Accurate Information)
Sections 253(d) and 256 (Accountability of Corporate Officers) of the Tax Code
Beyond its criminal violations, Hilmarc’s also faces civil liabilities amounting to ₱176,363,284.77 in unpaid taxes.
“Ghost Receipts Should Have No Place in Business” – DOJ Chief
Justice Secretary Jesus Crispin “Boying” Remulla underscored the severe implications of Hilmarc’s alleged fraud, emphasizing how ghost receipts weaken the country’s tax collection system and deprive the government of much-needed revenue for public services and infrastructure.
“Ghost receipts should have no place in the commerce of man as they hinder our growth and prosperity as a nation. Let this serve as a warning to those who continue to defraud the State of its due,” Remulla stated.
He further stressed that government contractors, more than any other businesses, are expected to uphold the highest level of diligence in tax compliance.
BIR’s Nationwide Crackdown on Ghost Receipts
Hilmarc’s is just one of many corporations now under fire in the BIR’s intensified war against tax evasion. In August 2024, BIR Commissioner Romeo Lumagui Jr. announced that the agency had uncovered ₱1.3 trillion worth of fraudulent receipts, leading to an estimated revenue loss of ₱370 billion.
The BIR, in collaboration with Ateneo de Manila University’s Mathematics Department, developed an advanced algorithm that detects ghost receipts with high accuracy, allowing authorities to swiftly identify fraudulent transactions.
Additionally, in November 2023, the BIR filed 15 criminal cases against 69 corporations and individuals involved in the sale and use of ghost receipts, covering industries such as:
Construction
Hardware supply
Marketing
Food services
These cases alone represent an estimated ₱1.8 billion in lost taxes.
What’s Next? Arrest Warrants Expected
With the DOJ formally filing the case, the next step is the issuance of arrest warrants against Hilmarc’s officials. The DOJ and BIR remain steadfast in their commitment to holding accountable all individuals and corporations engaged in tax evasion schemes.
The message is clear: fraudulent tax practices will not be tolerated, and those who manipulate the system will face the full force of the law.
For further updates, visit the DOJ’s official Facebook page: DOJ Official FB Page.
Ross is known as the Pambansang Blogger ng Pilipinas - An Information and Communication Technology (ICT) Professional by profession and a Social Media Evangelist by heart.
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