BIR files raps vs 2 Bulacan contractors over ghost flood works

MANILA, Philippines—The Bureau of Internal Revenue (BIR) on Thursday filed before the Department of Justice (DOJ) multiple violations of the National Internal Revenue Code (NIRC) against two contractors involved in ghost flood-control projects in Bulacan.

Facing complaints are IM Construction Corporation and SYMS Construction Trading, with combined tax deficiencies amounting to P13.8 million arising from fictitious expenses, underreported income, and false Value Added Tax (VAT) declarations.

Specifically, the two contractors are facing violations of Sections 254 and 255 of the NIRC for Tax Evasion, and Willful Failure to Supply Correct and Accurate Information.

“These cases are part of a broader and intensified crackdown on contractors engaged in ghost projects and fraudulent tax practices,” BIR Commissioner Charlito Martin Mendoza said.

For IM Construction Corporation, the BIR said it received payments for a pumping station and floodgate in Barangay Sto. Rosario, Hagonoy, Bulacan, but no structure was found during inspection.

“They filed a return, but the project is a ghost project. There was really no project done at all. So, their deductions, construction costs, have no basis, are fictitious, and were only made up to reduce the tax to be paid,” Mendoza said in Filipino.

Meanwhile, SYMS Construction Trading was contracted to reinforce a river wall in Barangay Piel, Baliuag, Bulacan, but Mendoza said that, upon an inspection also found no work had been built.

The BIR has already filed 12 criminal complaints related to the anomalous flood-control projects, with an estimated total potential tax liability of P8.87 billion.  /gsg/abc