BIR files new tax evasion raps vs contractors in flood control scam

MANILA, Philippines — The Bureau of Internal Revenue (BIR) filed tax evasion complaints at the Department of Justice against two contractors allegedly involved in the flood control corruption.

The bureau filed tax evasion complaints against Sally Santos, the owner of Syms Construction Trading and IM Construction Corp and its corporate officers, according to BIR Commissioner Charlito Mendoza in a press briefing on Thursday, November 27.

According to the BIR, the two companies face a combined tax deficiency assessment of P13.8 million resulting from fictitious expenses, underreported income and false value-added tax declarations.

The tax bureau filed complaints of tax evasion and willful failure to supply correct and accurate information, and all violations are under the National Internal Revenue Code.

Santos owns Syms Construction. According to Mendoza, the firm collected 100% of the contract amount for a reinforced river wall in Barangay Piel, Baliuag.

However, site inspections confirmed that no reinforced river wall was constructed.

Mendoza said that the false filings submitted by the company were deemed a clear, intentional effort to conceal income and evade taxes from a non-existent government project.

IM Construction Corp., Mendoza said, received payment for a pumping station and flood gate in Barangay Sto. Rosario, Hagonoy.

Physical verification, however, confirmed that no structure of any kind was built.

Similar to the case of Syms, Mendoza said that without actual accomplishment, the company’s claimed project costs, deductions, and input taxes were entirely fictitious.

In a separate statement by the BIR, it said that these two filings bring the total number of criminal complaints filed by the bureau in connection with anomalous flood-control projects to 12, with estimated total potential tax liabilities under investigation reaching P8.87 billion.

In October, the BIR filed tax evasion complaints against the contractor couple Curlee and Sarah Discaya, whose estimated total tax liability is P7,182,172,532.25.

The bureau also filed tax evasion complaints against former district engineers Henry Alcantara, Brice Hernandez and Jaypee Mendoza for an estimated tax liability amounting to P1.6 million.