Manila: The Bureau of Internal Revenue (BIR) has filed tax evasion charges with the Department of Justice against two contractors allegedly involved in ghost flood control projects in Bulacan. The companies named in the case are IM Construction Corp., SYMS Construction Trading, along with their responsible officers.
According to Philippines News Agency, BIR Commissioner Charlito Martin Mendoza stated that the two firms have been assessed with a total of PHP13.8 million in tax deficiencies. These arose from fictitious expenses, underreported income, and false value-added tax (VAT) declarations. The charges include violations of Section 254 (Tax Evasion) and Section 255 (Willful Failure to Supply Correct and Accurate Information) of the National Internal Revenue Code.
IM Construction was found to have received payments for constructing a pumping station and flood gate in Barangay Sto. Rosario, Hagonoy. However, physical verification revealed that no structure was built. Despite the lack of actual work, the company claimed project costs, deductions, and input taxes, all of which were fictitious, resulting in significant tax deficiencies. The BIR described these false declarations as a deliberate attempt to evade taxes and misuse public funds intended for flood-control infrastructure.
Similarly, SYMS Construction Trading collected the full contract amount for a reinforced river wall in Barangay Piel, Baliuag, but inspections confirmed that no such structure was built. The BIR noted that due to the absence of actual work, SYMS Construction Trading had no legal basis for claiming deductions or input taxes. The false filings submitted by the company indicate a clear intent to conceal income and evade taxes from a fully paid yet non-existent government project.
Commissioner Mendoza stated that these cases are part of a wider crackdown on contractors engaged in ghost projects and fraudulent tax practices. He emphasized that public money meant to protect families from flooding was misused, labeling the act as blatant corruption. The BIR is determined to prevent contractors from profiting through fake projects and falsified tax filings. Mendoza affirmed that the agency will continue pursuing offenders, recovering funds, and filing criminal charges until such practices cease.
The BIR is currently expanding audits of related contractors and individuals, with plans to file additional criminal complaints in the coming weeks. In total, the BIR has filed 12 criminal complaints linked to fraudulent flood-control projects, with estimated potential tax liabilities of PHP8.87 billion under investigation.
