1) What the “Release Tax” loan scam looks like

A common lending scam in the Philippines involves a fake lender (or fake “agent”) who offers a loan—often “pre-approved,” “no collateral,” or “instant release”—but requires the borrower to pay a “release tax” (or “processing fee,” “insurance,” “VAT,” “BIR clearance fee,” “DST,” “notarial fee,” “membership,” “activation,” “ATM delivery,” etc.) before any proceeds are released.

The pattern is consistent:

You apply (or are contacted) via Facebook, Messenger, Telegram, Viber, SMS, email, or a website.
You receive an “approval” and a promised release date/time.
Before release, you’re told to send money to a personal bank account, e-wallet, remittance outlet, or a “company cashier.”
After you pay, new charges appear (e.g., “BIR hold,” “audit fee,” “anti-money laundering verification,” “late release penalty,” “final clearance”).
The loan never arrives—or the scammers vanish or threaten you.

Key point: Legitimate lenders may charge fees, but “pay first to receive the loan” is a major red flag—especially when the payment goes to a personal account and there is no proper documentation.

2) Why “release tax” is a red flag in Philippine tax reality

Scammers exploit the fact that Filipinos know taxes exist but may not know how they work in lending.

A. BIR does not “hold” your private loan release

The Bureau of Internal Revenue (BIR) generally deals with tax compliance of businesses and individuals (registration, receipts, returns, withholding, etc.). BIR does not require a borrower to pay a “release tax” to unlock a privately offered loan from a lender you met online.

B. Documentary Stamp Tax (DST) is commonly misunderstood

Some loan documents can be subject to documentary stamp tax under Philippine tax law, but scammers weaponize the term “DST” to demand cash transfers. In legitimate transactions:

DST (if applicable) is handled with proper documentation.
You should receive legitimate paperwork and receipts.
It is not typically demanded through a rushed payment to a personal GCash or random bank account “so the loan can be released in 10 minutes.”

C. “VAT,” “withholding,” and “AML verification fees” are often misused terms

VAT is a business tax on sales/services; it’s not a magical “release fee” collected via personal wallets.
Withholding tax generally relates to income payments (e.g., interest, professional fees) and is handled through formal business processes.
Anti-Money Laundering (AML) compliance is primarily a duty of covered institutions; scammers often fake “AMLC clearance fees.”

3) Common variations of the scam (know the scripts)

You might see any of these “fee ladders”:

“Release tax” (often 5–15% of the loan)
“Processing / service fee”
“Insurance / guaranty bond”
“Notarial fee / attorney fee” (used to sound legal)
“BIR clearance / certificate fee”
“DST / documentary stamp”
“Bank transfer activation / Instapay charge” (inflated)
“Account upgrading” (especially with e-wallets)
“Penalty” for not paying the earlier fee immediately
“Refundable deposit” (they promise it’s refundable—then ask for another payment to “process the refund”)

If the “requirements” keep changing after each payment, you are almost certainly dealing with a scam.

4) Legal framework in the Philippines (what laws may apply)

The exact charges depend on facts, but “release tax” scams can fall under several Philippine laws:

A. Estafa (Swindling) – Revised Penal Code

If a scammer deceives you and you part with money because of that deception, that can be estafa (fraud/swindling). The essence is deceit + damage.

B. Other crimes under the Revised Penal Code

Depending on conduct:

Falsification (fake IDs, fake SEC certificates, fake documents)
Usurpation of authority / false representation (pretending to be a company officer or government-linked)
Threats / coercion (if they threaten you)

C. Cybercrime Prevention Act (RA 10175)

If the scam is executed through online systems (messages, websites, online transfers), it may be prosecuted as traditional crimes committed through ICT, which can affect how evidence is handled and where complaints are filed (cybercrime units).

D. Lending Company Regulation Act (RA 9474) / Financing Company Act (RA 8556)

Legitimate lending/financing companies are regulated (primarily through the SEC for registration and oversight). If scammers pretend to be a registered lending company, SEC enforcement becomes relevant.

E. Truth in Lending Act (RA 3765)

This law pushes transparency in credit terms. Scammers do the opposite—vague terms, shifting fees, no lawful disclosures.

F. Data Privacy Act (RA 10173)

Some fake lenders collect IDs/selfies, then harass, dox, or threaten. If personal data is misused, privacy violations may apply.

G. Anti-Money Laundering Act (RA 9160, as amended)

Victims can provide information to help trace funds. While AMLC actions are specialized, reporting can support account monitoring and law enforcement coordination.

5) First response checklist (what to do immediately)

If you suspect you’re in a “release tax” scam:

Stop paying. Do not send “one last fee.”
Preserve evidence. Screenshot everything (see evidence list below).
Secure your accounts.
- Change passwords on email/social accounts you used.
- Enable two-factor authentication.
If you sent money, contact:
- Your bank/e-wallet support immediately and request a report, trace, and possible freezing/hold (outcomes vary, but speed matters).
If you sent IDs/selfies, prepare for possible impersonation:
- Monitor for suspicious messages to your contacts.
- Consider a personal advisory message to close family (“I did not apply for loans using any other account…”).

6) Evidence to collect (build a case file)

Create a folder (cloud + offline) containing:

Identity and contact traces

Names used, phone numbers, emails, social media profiles, usernames/handles
Profile links and screenshots (include timestamps when possible)
Any “agent” business card images

Transaction evidence

Bank transfer receipts, Instapay/Pesonet details, GCash/Maya reference numbers
Beneficiary name, account number, bank/e-wallet, date/time, amount
Remittance slips (if sent through outlets)

Communications

Full chat thread screenshots (showing the conversation flow)
Voice call recordings (if lawful and available) or call logs
Emails with headers (if possible)

Documents they sent

“Loan contracts,” “approval letters,” “SEC certificate,” “BIR certificate,” IDs, notarized-looking pages
Any “official” forms, logos, stamps (often fake—still useful as evidence)

Your side documents (if shared)

Photos of your ID, selfie holding ID, proof of billing (important for identity theft angle)

Tip: Don’t edit screenshots. Keep originals and also export chat logs if the platform allows.

7) Reporting to the SEC (Securities and Exchange Commission)

When SEC is the right agency

Report to the SEC if:

They claim to be a lending company or financing company;
They use fake “SEC Registration” claims;
They are running an investment/loan scheme under a corporate front;
They operate publicly (social media pages, websites) soliciting borrowers.

What SEC can do (practically)

Receive complaints and intelligence
Investigate possible violations involving entities using corporate/lending claims
Issue advisories, warnings, and enforcement actions against entities under its jurisdiction
Coordinate with other agencies when appropriate

What to include in your SEC complaint

Full narrative: how you were contacted, what was promised, what you paid, and what happened after
All evidence (especially proof of payment and the scam’s “company identity” claims)
The exact name they used and any registration number they cite

Where/how to file

The SEC typically accepts complaints through its official complaint channels (often online/email and/or office filing). Use the official SEC website/contact directory to ensure you’re sending it to the legitimate SEC office/unit that handles enforcement/complaints, and avoid “fixers” or unofficial pages.

8) Reporting to the BIR (Bureau of Internal Revenue)

When BIR is the right agency

Report to BIR if scammers:

Claim you must pay a “BIR release tax,” “BIR clearance fee,” “VAT,” “DST,” or “withholding” to them;
Use fake receipts/invoices or fake BIR certificates;
Impersonate BIR personnel or imply BIR is holding your loan.

What BIR can do (practically)

Receive reports about misuse of tax terms, fake receipts, and possible tax-related fraud representations
Use the information for enforcement intelligence and coordination

What to submit

Screenshots where they invoke BIR authority (“BIR hold,” “BIR clearance required,” etc.)
Any fake “official receipt” images, TIN claims, or BIR form references
Payment details (accounts and names used)

Important: BIR is not your “loan release regulator”

Even if BIR accepts your report, your primary path for criminal action is still through law enforcement/prosecution channels. BIR reporting helps document the misuse of tax authority and can support broader enforcement.

9) Reporting to law enforcement (PNP, NBI, DOJ)

Best starting points

Because these scams are usually online and involve money transfers, you can report to:

PNP Anti-Cybercrime Group (ACG) or local PNP (who may endorse to ACG)
NBI Cybercrime Division or NBI field office
City/Provincial Prosecutor’s Office (for filing a criminal complaint affidavit; law enforcement can help you prepare and identify respondents)

What you can file

Common complaint directions include:

Estafa (fraud)
Cybercrime-related offenses (if done online)
Threats / harassment (if they threaten you or your contacts)
Identity/data misuse (if they used your ID/selfie to harass or impersonate)

What to expect

You will likely execute a Sworn Statement/Affidavit of Complaint
You may be asked to provide devices for extraction or to present original files
Investigators may issue requests to banks/e-wallets and telcos (you typically cannot compel these yourself)

10) Reporting to banks, e-wallets, platforms (often overlooked but important)

Even if you file with SEC/BIR/law enforcement, also report to:

The bank or e-wallet where you sent money (fraud/scam report)
The platform used (Facebook/Meta, Telegram, etc.) for takedown and preservation requests

This can help:

Flag or limit the scammer’s accounts
Preserve logs that can support investigation
Potentially interrupt ongoing victimization

11) Can you recover your money?

Recovery is case-specific. Realistic points:

If the funds were moved out quickly (common), reversal is difficult.
Rapid reporting increases chances of an internal hold—but it’s not guaranteed.
Criminal cases can lead to restitution orders in some outcomes, but cases take time.
Civil action (collection of sum of money/unjust enrichment) is possible if the respondent is identified and reachable—but scammers often use fake identities.

Even if recovery is uncertain, reporting is still valuable to stop repeat victimization and build cases that can lead to arrests.

12) Prevention guide (Philippine practical checklist)

Before dealing with any lender:

Verify registration (especially if they claim to be a lending/financing company).
Never pay “release” fees to personal accounts.
Demand proper documentation:
- Written loan terms
- Clear disclosures of interest, fees, penalties
- Official receipts/invoices where appropriate
Be wary of:
- “Guaranteed approval”
- “No documents needed”
- “Pay now or your slot is forfeited”
- “Refundable deposit” that requires another payment to refund
Use known financial institutions and verified channels.
If it’s an app-based lender: check permissions—avoid apps that demand excessive access (contacts/photos/messages) unless you are sure it’s legitimate and compliant.

13) Sample affidavit outline (you can adapt)

AFFIDAVIT OF COMPLAINT (Outline)

Personal details: Name, age, address, ID presented
Narrative timeline:
- Date you were contacted / saw the ad
- Platform used (FB/Telegram/etc.)
- Representations made (loan amount, terms, promised release)
- Demand for “release tax” and the exact words used
- Payment details (amount, date, reference numbers, recipient account)
- Subsequent demands and failure to release loan
Damage: Total amount lost, stress/harassment, misuse of personal data
Evidence attached: Enumerate annexes (screenshots, receipts, profiles, documents)
Request: Investigation, identification of respondents, filing of appropriate charges
Signature and jurat: Signed and sworn before authorized officer

14) Quick FAQ

Is there any legitimate “release tax” I must pay before a loan is released? In typical consumer lending, the “pay first to receive your loan” demand—especially via personal accounts—is a hallmark of fraud. Legitimate lenders disclose fees clearly and follow formal billing/receipting processes.

They said the fee is refundable. Should I pay so I can get it back? No. “Refundable” is a common hook. Paying more usually triggers more demands.

They are threatening to message my contacts because I sent my ID/selfie. Preserve the threats, report to cybercrime units, and consider a data privacy angle. Warn close contacts and lock down your accounts.

Should I post the scammer publicly? Be careful. Stick to reporting to authorities/platforms and sharing warnings without making defamatory claims about identifiable individuals unless you are certain and have evidence. Focus on facts and screenshots if you must warn others.

15) Practical reporting roadmap (recommended order)

Stop payment + preserve evidence
Report to bank/e-wallet (immediate)
File with PNP ACG / NBI Cybercrime (for investigation, tracing, account/telco requests)
File complaint with the Prosecutor’s Office (estafa/cybercrime; often guided by law enforcement)
Report to SEC (if posing as lending/financing company or using SEC credentials)
Report to BIR (if invoking fake tax claims/receipts)

16) Final notes

Treat “release tax” loan offers as high-risk until proven legitimate.
The strongest cases are built with complete evidence: payment trails + identity traces + the exact deceit used.
If you want, paste a redacted version of the messages (remove your personal info, leave dates/amounts), and I can help you organize it into a clean affidavit narrative and an annex list for filing.