The Bureau of Internal Revenue (BIR) on Thursday filed tax evasion cases against IM Construction Corporation, SYMS Construction Trading, and several of their officials for alleged "ghost" flood-control projects.

According to the BIR Commissioner Charlito Martin Mendoza, both companies allegedly violated the National Internal Revenue Code (NIRC), with their combined tax liabilities reportedly totaling around ₱13.8 million.

RH Boy Gonzales reported, investigators found that several multimillion-peso flood-control contracts awarded to the two firms by the Department of Public Works and Highways (DPWH) either did not exist, were never implemented, or were mere ghost transactions.

The BIR also discovered discrepancies in the firms’ income tax and value-added tax (VAT) declarations, including the use of fabricated deductions.

This is the 12th criminal case filed by the BIR related to anomalous flood-control projects, which have a combined estimated value of ₱8.87 billion.

The companies were charged with tax evasion and willful failure to supply correct and accurate information in their tax returns, in violation of Sections 254 and 255 of the NIRC.

Mendoza said the case forms part of a broader investigation into contractors allegedly involved in fraudulent flood-control projects. More individuals and entities may face charges as the audit continues.