Senator Estrada proposes rewards for informants exposing large-scale tax, customs violations

Philippine Senator Jinggoy Ejercito Estrada filed Senate Bill No. 1011 proposing rational rewards to informants who expose large-scale violations of the country’s tax and customs laws.

“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 in a press release.

Estrada said Senate Bill No. 1011 aims to modernize the decades-old informer’s reward system, which he said has become ineffective due to outdated caps that discourage whistleblowers from reporting large-scale fraud.

Under existing law, informants are limited to a maximum reward of ₱1 million regardless of the magnitude of the tax evasion or smuggling case, a restriction Estrada said has long weakened efforts to boost public cooperation.

Under SBN 1011, informants who expose tax fraud may receive up to ₱10 million or 10 percent of the recovered taxes, whichever is lower. In smuggling cases, whistleblowers may be entitled to up to ₱10 million or 20 percent of the value of seized goods, whichever is lower.

The measure also protects the confidentiality of informants’ identities, sets penalties for unauthorized disclosure, and bars establishments from denying liability once information results in revenue recovery or the seizure of goods. Those who violate confidentiality rules may face fines of up to ₱1 million and imprisonment of up to 15 years.

Only information that results in the actual recovery of revenues, surcharges, fees, penalties, or confiscated goods will be eligible for a reward, while government officials, employees, and their close relatives are prohibited from claiming any incentive.

“This bill encourages public cooperation in reporting tax cheats and smugglers. By rewarding informants fairly, we improve tax collection, enforcement, and administration in the BIR and BOC,” Estrada said.

“We want to empower citizens to help the government fight corruption and smuggling, while ensuring that their efforts are recognized and their identities protected,” he added.

-Paraluman News