Manila: The Department of Justice (DOJ) recently commenced the hearing concerning criminal tax evasion charges filed by the Bureau of Internal Revenue (BIR) against contractor couple Pacifico "Curlee" Discaya II and Cezarah Rowena "Sarah" Discaya. The charges involve alleged tax liabilities amounting to PHP7.1 billion.

According to Philippines News Agency, DOJ spokesperson Nicollo "Polo" Martinez announced that the Discayas submitted their counter affidavits in response to cases filed by the BIR for violation of Sections 263, 254, and 255 of the National Internal Revenue Code of 1997, as amended. Martinez indicated that parties involved may submit a reply affidavit on December 5 and a rejoinder affidavit on December 19, after which the case will be submitted for resolution.

The BIR initiated charges against the Discayas and their corporate officer on October 8, following investigations into unpaid individual income taxes, unpaid excise taxes on nine luxury vehicles, and unpaid documentary stamp taxes related to their supposed divestment from four Discaya-owned construction firms between 2018 and 2021.

The General Information Sheets of the Discaya-owned construction firms revealed several transfers or disposals of shares from these companies. Despite claims of divestment during legislative hearings on flood control projects, the couple failed to file a documentary stamp tax return and pay the associated taxes necessary for executing such transfers.

The BIR maintained that the couple did not divest from firms including St. Gerrard, St. Timothy, St. Matthew, and Alpha and Omega. There is no record of any return or payment for the alleged divestment, specifically regarding documentary stamp taxes.

Additionally, the BIR uncovered that the Discayas neglected to file excise tax returns and pay taxes on nine luxury vehicles registered under their names, based on Land Transportation Office records.