Tax raps filed vs ex-DPWH engineers involved in flood control anomalies

MANILA, Philippines — The Bureau of Internal Revenue (BIR) filed tax evasion complaints against former engineers of the Department of Public Works and Highways (DPWH) who were involved in alleged corruption in flood control projects.

BIR Commissioner Romeo Lumagui Jr., along with other BIR officials, filed tax evasion complaints before the Department of Justice on Thursday, November 6, against Henry Alcantara, Brice Hernandez and Jaypee Mendoza.

The complaints stemmed from the alleged over P1.6 billion in income tax deficiencies of the engineers.

"Nakita natin based on doon sa mga lifestyle checks na ginawa natin ang kanilang mga ginastos, nakuha rin natin 'yan sa mga pagdinig na ginawa sa Senado, at 'yung kanilang mga ari-arian," Lumagui told reporters in an interview.

"Nakita natin na 'di tugma ito sa kanilang kinikita, o 'yung kanilang mga reported na mga revenues nila," he added.

The following is the breakdown of the alleged tax liabilities, according to Lumagui:

• Henry Alcantara: P900 million
• Brice Hernandez: P600 million
• Jaypee Mendoza: P180 million

The bureau's investigation revealed that the former officials allegedly derived significant income from "proponents' shares," or kickbacks, from so-called "ghost" flood control projects, which were allegedly laundered through casino gambling.

"Through Philippine Amusement and Gaming Corp. (PAGCOR) and casino records of the three aforementioned individuals, the BIR confirmed that the aforementioned individuals exchanged cash for casino chips grossly disproportionate to their declared sources of income," the BIR's separate statement read.

Further lifestyle checks involving records from the Land Registration Authority and the Land Transportation Office showed that the officials had also acquired numerous high-value properties and luxury vehicles that their official Statements of Assets, Liabilities, and Net Worth and tax returns could not justify.

The officials are being charged with tax evasion and willful failure to file and supply correct and accurate information in their income tax returns, in violation of Sections 254 and 255, in relation to other provisions of the National Internal Revenue Code of 1997.

This filing marks the second batch of criminal cases filed by the bureau in relation to the flood control anomaly. According to the BIR, the total tax liability now being pursued across all 10 criminal cases filed so far in the probe is over P8.86 billion.

On October 8, the BIR also filed tax evasion complaints against contractor couple Sarah and Curlee Discaya.

The cases involve unpaid income, excise, and documentary stamp taxes tied to the couple and their companies, including St. Gerrard Construction General Contractor & Development Corp.

For the Discaya couple, the estimated total tax liability is P7,182,172,532.25, according to Lumagui.