BIR files P7.18-B tax evasion cases tied to flood-control scandal – BusinessWorld Online
The Bureau of Internal Revenue (BIR) on Wednesday filed tax evasion complaints worth P7.18 billion against two contractors implicated in the Philippines’ flood-control scandal.
The cases lodged before the Department of Justice cover unpaid income, excise and documentary stamp taxes of Cezarah Rowena C. Discaya and her husband Pacifico F. Discaya from 2018 to 2021. Also named was a corporate officer of St. Gerrard Construction Gen. Contractor & Development Corp., the agency said in a statement.
Internal Revenue Commissioner Romeo D. Lumagui, Jr. said the complaints stem from the couple’s failure to file income tax returns and pay excise taxes on nine luxury vehicles, as well as their nonpayment of documentary stamp taxes on the transfer of shares in four construction companies.
“Although we have already discovered P7.1 billion in tax deficiencies, today’s filings are merely the tip of the iceberg,” Mr. Lumagui said in the statement. He added that further audits of the Discaya-owned companies — St. Gerrard, St. Timothy, St. Matthew and Alpha & Omega — could uncover more liabilities.
The BIR said the spouses’ failure to pay taxes on share transfers nullified their supposed divestment from the firms. The agency cited Land Transportation Office data showing they did not pay excise taxes for vehicles under their names.
Mr. Lumagui said contractors working on government-funded projects must meet their tax obligations, warning that more cases could follow once audits are finished. — Erika Mae P. Sinaking