THE BUREAU of Internal Revenue (BIR) has filed tax evasion complaints against two Bulacan-based contractors allegedly involved in “ghost” flood control projects.
In a statement on Thursday, the agency said newly appointed BIR Commissioner Charlito Martin R. Mendoza lodged criminal complaints against IM Construction Corp. and SYMS Construction Trading before the Department of Justice (DoJ) over fictitious expenses, underreported income, and false value-added tax declarations.
The BIR said combined assessments for IM Construction and SYMS Construction amounted to P13.8 million in total tax deficiencies.
“The BIR will not allow contractors to enrich themselves through fake projects and falsified tax filings. We will pursue every offender, recover every peso, and continue filing criminal charges until this practice ends,” said Mr. Mendoza, who assumed office on Nov. 13.
The two firms were charged with violation of Section 254 of the tax code or tax evasion, and Section 255 or willful failure to supply correct and accurate information.
The BIR said IM Construction Corp. received payments for the construction of a pumping station and flood gate in Barangay Sto. Rosario, Hagonoy, Bulacan.
However, physical verification confirmed that no structure of any kind was built, it said. The company’s claimed project costs, deductions, and input taxes were entirely fictitious, resulting in significant tax deficiencies, it added.
“These false declarations constitute a deliberate, willful attempt to evade taxes while misusing public funds intended for critical flood control infrastructure,” the BIR said.
A separate BIR investigation showed SYMS Construction Trading collected the full contract amount for a reinforced river wall in Barangay Piel, Baliuag, Bulacan but inspectors found no river wall at the site.
“Because the project had no actual accomplishment, the taxpayer had no legal basis to claim deductions or input taxes. The false filings submitted by SYMS Construction Trading reflect a clear, intentional effort to conceal income and evade taxes derived from a fully paid but nonexistent government project,” the agency said.
The BIR has now filed a total of 12 criminal complaints linked to anomalous flood control projects, with estimated total potential tax liabilities of P8.87 billion under investigation.
Separately, Public Works Secretary Vivencio “Vince” B. Dizon said the two contractors are also facing bid-rigging and bid manipulation complaints. — Aubrey Rose A. Inosante
