Manila: A proposed measure seeking to raise rewards for informants is expected to bolster enforcement efforts of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) by encouraging the public to report large-scale tax evasion and smuggling cases, Sen. Jinggoy Ejercito Estrada said Thursday.

According to Philippines News Agency, Estrada, who filed Senate Bill No. 1011, said the current informer's reward system has become ineffective due to low caps that no longer match the scale of major revenue violations. Estrada emphasized the importance of public cooperation in combating tax evasion and smuggling, noting that inadequate protection and incentives under existing laws deter potential informants from coming forward.

Under the proposed measure, informants who help uncover tax fraud may receive up to PHP10 million or 10 percent of the recovered amount, whichever is lower. For smuggling cases, rewards may reach up to PHP10 million or 20 percent of the value of confiscated goods, whichever is lower. Estrada stated that higher and more rational incentives would enhance the BIR and BOC's ability to detect and address complex schemes often reliant on insider knowledge, thereby improving revenue collection and enforcement outcomes.

The bill also aims to strengthen institutional safeguards by ensuring the confidentiality of informants' identities, imposing penalties for unauthorized disclosure, and disqualifying government officials, employees, and their close relatives from receiving rewards. Only information leading to the actual recovery of taxes, penalties, or confiscated goods will qualify for incentives, the measure specified.

"This bill encourages public cooperation in reporting tax cheats and smugglers," Estrada said.