BIR probes Chiz’s campaign donor; raps filed vs contractors

MANILA, Philippines — The Bureau of Internal Revenue (BIR) is probing Sen. Francis Escudero’s campaign donor for possible tax fraud.

Income tax returns declared by Lawrence Lubiano, president of Centerways Construction and Development, are being reviewed to verify whether his campaign donation in 2022 aligned with his reported assets.

“If he admittedly stated that he declared giving a P30-million donation, it means he has an asset of P30 million,” BIR Commissioner Charlito Martin Mendoza said yesterday.

“We will compare this to the tax returns he filed to see if the taxes paid correspond to that asset. That is the angle that the BIR is looking into,” he added.

The Commission on Elections terminated on Wednesday the investigation against Lubiano for lack of evidence.

Government contractors are prohibited from donating to election candidates.

Contractors charged

Meanwhile, tax evasion charges against two construction firms implicated in “ghost” flood control projects in Bulacan have been filed by the BIR.

IM Construction Corp. and SYMS Construction Trading are accused of having P13.8 million in tax deficiencies stemming from fabricated expenses, underreported income and falsified declarations.

“They took public money meant to protect families from flooding and built nothing,” Mendoza said. “That is corruption at its most shameless. The BIR will not allow contractors to enrich themselves through fake projects and falsified tax filings.”

Twelve criminal complaints have now been filed by the BIR amid anomalous flood control projects nationwide.

About P8.87 billion in potential tax liabilities are under investigation.

Probers found that SYMS Construction Trading had received the full contract payment for a reinforced river wall in Barangay Piel in Baliuag, Bulacan.

Inspections confirmed that no structure was built at the site.

IM Construction Corp. had also been paid for supposedly building a pumping station and floodgate in Barangay Sto. Rosario in Hagonoy.

No structure existed at the location.

Mendoza led the filing of charges before the Department of Justice against SYMS Construction Trading and its proprietor, Sally Santos, and IM Construction Corp. and its corporate officers, including president Robert Imperio. –  Daphne Galvez