The Bureau of Internal Revenue (BIR) yesterday filed tax evasion charges against two contractors allegedly involved in “ghost” flood control projects in Bulacan.
The Bureau said the complaints filed at the Department of Justice were against IM Construction Corp. and SYMS Construction Trading for alleged violations of the National Internal Revenue Code.
Bureau investigation revealed that IM Construction Corp. received payments for the construction of a pumping station and flood gate in Brgy. Sto. Rosario, Hagonoy, Bulacan.
The company allegedly declared their project costs, deductions, and input taxes for the construction but physical verification confirmed that no such structure was built.
“With zero actual accomplishment, the company’s claimed project costs, deductions, and input taxes were entirely fictitious, resulting in significant tax deficiencies,” BIR said in a statement.
BIR added that SYMS Construction Trading also collected the full contract amount for a reinforced river wall project in Brgy. Piel, Baliuag, Bulacan.
However, inspections likewise confirmed the non-existence of the river wall on site despite the company’s deduction claims and input taxes.
“The false filings submitted by SYMS Construction Trading reflect a clear, intentional effort to conceal income and evade taxes derived from a fully paid but non-existent government project,” it said.
Both contractors and their responsible officers are charged with tax evasion (Section 254) amounting to a total of P13.8 million in tax deficiencies due to fictitious expenses, underreported income, and false value-added tax (VAT) declarations.
The respondents are also charged for their willful failure to supply correct and accurate information (Section 255).
BIR Commissioner Charlito Mendoza noted that these cases are part of an “intensified crackdown” on contractors involved in ghost projects and fraudulent tax practices.
He added that the bureau has expanded audits of related contractors and individuals, and will file more criminal complaints in the coming weeks.
BIR investigation revealed that IM Construction Corporation received payments for the construction of a pumping station and flood gate in Barangay Sto. Rosario, Hagonoy. Physical verification confirmed that no structure of any kind was built.
With zero actual accomplishment, the company’s claimed project costs, deductions, and input taxes were entirely fictitious, resulting in significant tax deficiencies, the BIR said. These false declarations constitute a deliberate, willful attempt to evade taxes while misusing public funds intended for critical flood-control infrastructure, it added.
Editor’s Note: This is an updated article. Originally posted with the headline: “BIR files more tax evasion raps vs. Bulacan infra contractors”
