Bulacan flood control ‘BGC boys’ face P1.68 billion tax raps

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has secured clearance from the Department of Justice (DOJ) for the filing of 44 criminal tax cases against the so-called BGC Boys or Bulacan Group of Contractors – former officials implicated in the flood control scandal – over alleged tax liabilities exceeding P1.68 billion.

The DOJ found probable cause to charge former Department of Public Works and Highways officials Jaypee de Leon Mendoza, Brice Ericson Hernandez and Henry Alcantara for violation of Sections 254 and 255 of the amended National Internal Revenue Code.

Lifestyle checks on the former officials conducted by the BIR uncovered discrepancies between their declared incomes and actual spending, as well as their failure to file income tax returns for years.

With the DOJ’s finding of probable cause, the corresponding criminal Information may now be filed before the Court of Tax Appeals, it said.

The BIR said the DOJ recommended the filing 16 criminal information against Mendoza for P179.79 million in total tax liabilities from 2021 to 2024. The 18 criminal information against Alcantara was for his P913.83 million in unpaid taxes for 2022 to 2024. His acquisitions did not match his reported earnings, according to the BIR.

Based on the 10 criminal information recommended against Hernandez, the former official had P593.776 million in total tax liabilities from 2020 to 2024.

“The DOJ’s finding of probable cause is an important milestone in the enforcement process. These cases demonstrate the Bureau’s continuing commitment to enforce the tax laws based on evidence and in accordance with the law,” Commissioner Charlito Martin Mendoza said.

“The Bureau will continue to enforce the tax laws firmly, fairly and consistently, while respecting due process at every stage of the proceedings,” he added.