BIR charges Discayas over P7.1b in tax liability

The Bureau of Internal Revenue (BIR) said Wednesday it filed multiple criminal cases against couple Pacifico Discaya II and Cezarah Rowena Cruz Discaya and a corporate officer of St. Gerrard Construction Gen. Contractor & Development Corp. over alleged tax liability of P7.1 billion.

BIR Commissioner Romeo Lumagui Jr. said in a statement the charges stem from several investigations into the Discayas’ unpaid individual income taxes, excise taxes on nine luxury vehicles and documentary stamp taxes related to a supposed divestment from four construction firms owned by the family.

“Today, the BIR will file multiple tax charges against the spouses Discaya and their corporate officer. We have assessed a total tax liability of P7,182,172,532.25,” Lumagui said.

He said that while the current deficiency is already billions, these cases are “merely the tip of the iceberg” and more cases are expected once the audit of the Discaya-owned construction firms is complete.

The primary case targets Curlee and Sarah Discaya in their individual capacities for failing to pay income taxes for taxable years 2018 to 2021.

The BIR said it also found that the couple failed to file a documentary stamp tax return and pay the corresponding tax on the alleged transfer or disposal of shares of stock from four Discaya-owned construction firms: St. Gerrard, St. Timothy, St. Matthew and Alpha & Omega.

“The spouses Discaya never divested from St. Gerrard, St. Timothy, St. Matthew and Alpha & Omega. The BIR has no record of any return or payment for such divestment, particularly that of documentary stamp taxes,” Lumagui said, concluding that they are still the beneficial owners of the companies.

He said the BIR also discovered that Curlee Discaya, Sarah Discaya and St. Gerrard failed to file the required excise tax returns and pay the excise taxes on nine luxury vehicles registered under their names.

Lumagui said the BIR would continue its audit of the Discaya-owned construction firms and other contractors involved in “anomalous flood control projects.”

“Curlee and Sarah Discaya are guilty of not paying their taxes. They failed to pay proper income taxes, excise taxes even documentary stamp taxes,” said Lumagui.

“Expect more cases to be filed. The BIR will make sure that the spouses Discaya and their corporate officers will be imprisoned for violating our tax laws,” he said.