The Bureau of Internal Revenue (BIR) has filed criminal cases against three former officials of the Department of Public Works and Highways (DPWH) over alleged ₱1.6 billion in income tax liabilities.
BIR Commissioner Romeo D. Lumagui Jr. personally filed the charges before the Department of Justice (DOJ) against Henry Alcantara, Brice Hernandez, and Jaypee Mendoza for their alleged failure to pay proper income taxes despite evidence of lavish lifestyles and ownership of properties that were inconsistent with their declared income.
According to the BIR, the move is in line with President Ferdinand “Bongbong” Marcos Jr.’s directive to ensure accountability among individuals involved in irregularities surrounding government infrastructure projects.
“These 3 ex-DPWH officials had lavish lifestyles. We discovered ₱1.6 billion in income tax deficiencies after investigating their financial transactions, properties, business interests, and tax returns of the aforementioned individuals. This is a clear case of tax evasion,” Lumagui said in a press relase.
BIR also said that the investigation showed that the officials allegedly derived income from “proponents’ shares” or kickbacks from anomalous flood-control projects, which were reportedly laundered through casino gambling.
"Through Philippine Amusement and Gaming Corporation (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 statement reads.
The bureau also revealed that records from the Land Transportation Office (LTO) and the Land Registration Authority (LRA) also showed that the individuals owned luxury vehicles and high-value properties that could not be justified by their tax returns.
“Their Statement of Assets, Liabilities, and Net Worth (SALNs) and tax returns cannot justify their lavish lifestyles. Their financial activities and business interests are grossly disproportionate to their declared income,” Lumagui added.
The BIR has so far filed 10 criminal cases in connection with the ongoing probe into tax evasion linked to government projects, totaling ₱8.86 billion in liabilities.
Lumagui said the cases are part of the second batch of criminal complaints filed against former government officials involved in alleged corruption and tax evasion.
The former officials are facing charges for willful failure to file accurate tax returns and tax evasion.
"This is in violation of Sections 254 and 255, in relation to Sections 24(A)(1)(a), 51(A)(1)(a) and 74(A) of the National Internal Revenue Code of 1997, as amended," the BIR noted.
In total, the BIR has already filed ten criminal cases amounting to ₱8.86 billion in tax deficiencies with the help of the DPWH, Anti-Money Laundering Council (AMLC), LRA, LTO, Philippine Amusement and Gaming Corporation (PAGCOR), and the Independent Commission on Infrastructure.
