BIR to probe pols’ lifestyles; Discayas face P7 billion tax case

MANILA, Philippines —  The Bureau of Internal Revenue (BIR) is placing politicians and other personalities involved in the anomalous flood control projects under the microscope, as the agency conducts a lifestyle check.

BIR Commissioner Romeo Lumagui Jr. announced the move yesterday, during the filing of charges against controversial contractor couple Curlee and Sarah Discaya over their alleged P7.18 billion in tax liability.

“We are continuously conducting audits and investigations on all contractors, not just them. In fact, we are also carrying out lifestyle checks on other personalities,” Lumagui said.?

Stressing that the tax probe on the Discayas had started last year, Lumagui told reporters that the BIR is also conducting lifestyle checks on others involved in the alleged flood control corruption, including politicians. ?“The BIR has nothing to do with the Discayas becoming state witnesses. Whoever is chosen as a state witness, as far as we’re concerned, is beyond our jurisdiction because we’re dealing with taxes here. So even if they become state witnesses, they are still required to pay these taxes,” Lumagui said after filing the tax charges.

He stated that the charges only cover the years 2018 to 2021, explaining that the investigation into other taxable years is still ongoing.?Pressed on the reason why the agency only filed the tax case now, Lumagui said the BIR faced challenges as the Discayas refused to accept the agency’s notices, prompting officials to resort to alternative means of service. ?He also added that the bureau needed more information from other government agencies to ensure that the case filing was thorough and complete.?“They failed to pay proper income taxes, excise taxes and even documentary stamp taxes. Government contractors are engaged to do public works and are paid through public funds, there is no reason why they should not pay their own share of taxes,” the tax chief said. ?Lumagui added that the Discaya couple never divested from St. Gerrard, St. Timothy, St. Matthew and Alpha & Omega, as the agency has no record of any return or payment related to such divestment. ?The BIR noted that the spouses failed to pay the required taxes for the divestment, indicating that no divestment took place.

The tax agency also reported that the Discayas failed to file excise tax returns and pay excise taxes for nine luxury vehicles registered in their names, based on records from the Land Transportation Office.

Freeze order

The Anti-Money Laundering Council (AMLC) has secured its fifth freeze order from the Court of Appeals as part of its widening investigation into alleged irregularities in government flood control projects.

The latest order, issued on Oct. 8, covers 12 additional bank accounts linked to persons of interest, including an entity whose license was allegedly used to implement ghost projects.

“Every freeze order matters. Each freeze order secured strengthens the evidentiary trail, ensuring that illicit funds cannot be concealed or dissipated,” AMLC executive director Matthew David said.

To date, the AMLC’s previous four freeze orders have led to the freezing of 1,632 bank accounts, 54 insurance policies, 163 motor vehicles, 40 real properties and 12 e-wallet accounts, bringing the total value of seized assets to over P4.4 billion.

This represents an increase of about P200 million from the P4.2-billion total reported last week, following the fourth freeze order.

“The AMLC assures the public that it will continue to work closely with relevant stakeholders and government agencies to pursue all leads and ensure that funds intended for public welfare are not diverted for unlawful gain,” the watchdog said.

The series of freeze orders stem from the government’s broader campaign against corruption in infrastructure spending. The ongoing investigation seeks to uncover financial links between public sector anomalies and possible money laundering activities involving flood control projects.

David earlier said the AMLC is expanding its investigation into alleged corruption in flood control projects to cover foreign-based assets of individuals linked to the controversy.

Freeze orders are initially valid for 20 days but can be extended to six months. During that period, AMLC is expected to file petitions for civil forfeiture before the Regional Trial Court, which could allow the government to take permanent possession of the assets. – Keisha Ta-asan, Daphne Galvez