In the Philippines, the operation of an educational institution is a privilege granted by the State, strictly regulated to ensure the quality of education and the protection of students. When a school operates without the necessary authority or issues fraudulent receipts, it violates several laws and administrative regulations.

This article outlines the legal framework, the identification of "fly-by-night" schools, and the specific steps for reporting these entities.

1. The Legal Requirement for a Permit to Operate

Under the Education Act of 1982 (Batas Pambansa Blg. 232) and the Revised Manual of Regulations for Private Schools, no private school can legally offer educational programs without prior authorization from the government.

DepEd (Department of Education): For Kindergarten, Elementary, and High School levels.
CHED (Commission on Higher Education): For College and Graduate levels.
TESDA (Technical Education and Skills Development Authority): For vocational and technical courses.

Operating without a permit means the school’s curriculum is not vetted, and the units or diplomas earned by students are not legally recognized, rendering them useless for further study or official employment.

2. Fraudulent Financial Practices: Fake Receipts

Issuing "fake" receipts—or failing to issue Official Receipts (OR) registered with the Bureau of Internal Revenue (BIR)—is a serious offense under the National Internal Revenue Code (NIRC).

Non-Issuance of Receipts: All businesses, including schools, must issue a BIR-registered receipt for every payment received.
Tax Evasion: Fake receipts are often used to underreport income and evade taxes.
Estafa: If a school misrepresents itself as a legitimate, accredited institution to solicit fees, it may be liable for Estafa (Criminal Fraud) under Article 315 of the Revised Penal Code.

3. How to Verify a School's Legitimacy

Before filing a report, verify the school’s status through the following channels:

DepEd/CHED Portals: Most regional offices maintain a "Masterlist of Schools with Permits to Operate" on their official websites.
Verification of Serial Numbers: Check the school’s Official Receipt. It must contain the Taxpayer Identification Number (TIN) and a BIR Authority to Print (ATP) number at the bottom.
Request for Recognition: Every legitimate school is required to display its Government Recognition Number in a conspicuous place within its administrative office.

4. Steps to Report the Violation

Step A: Administrative Complaint (For Lack of Permit)

If the school is operating without a permit, the complaint should be filed with the relevant regulatory body:

Draft a Letter-Complaint: Detail the name of the school, its address, and the specific programs being offered.
Attach Evidence: This includes brochures, enrollment forms, or social media advertisements.
Submit to the Regional Office: * For K-12: Contact the DepEd Regional Director or the Schools Division Office (SDO).

For College: Contact the CHED Regional Office (CHEDRO) Legal Division.

Step B: Tax and Receipting Complaint (For Fake Receipts)

If the issue involves fraudulent receipts, the BIR is the primary agency for enforcement:

Visit the RDO: Go to the Revenue District Office (RDO) that has jurisdiction over the school’s location.
File a Complaint-Affidavit: State that the school is issuing non-compliant receipts or refusing to issue official ones.
eComplaint: Use the BIR’s "eComplaint" system or the "Rat-on-a-Rat" (ROAR) program for tax violations.

Step C: Criminal Action (For Estafa/Fraud)

If the school knowingly deceived parents and students into paying for unaccredited education:

Police Report: File a blotter at the nearest police station.
Prosecutor’s Office: File a criminal complaint for Estafa through a private lawyer or the Public Attorney’s Office (PAO) if you qualify for legal aid.

5. Penalties for Violators

Schools found operating illegally and engaging in financial fraud face severe consequences:

Administrative: Immediate Cease and Desist Orders, permanent closure, and blacklisting of the school's incorporators.
Criminal: Imprisonment and substantial fines under the Revised Penal Code and the Tax Code.
Civil: The school may be ordered to refund all tuition and miscellaneous fees collected from students, plus damages.

6. Summary Table for Quick Reference

Violation	Primary Agency	Legal Basis
No Permit to Operate	DepEd / CHED / TESDA	BP 232 (Education Act)
Fake / No Receipts	Bureau of Internal Revenue	National Internal Revenue Code
Deceptive Enrollment	National Bureau of Investigation (NBI) / PNP	Revised Penal Code (Estafa)
Unfair Trade Practices	DTI (Department of Trade)	Consumer Act of the Philippines