The Market Monitor Minding the Nation's Business
The Bureau of Internal Revenue (BIR) has filed tax evasion charges before the Department of Justice against three former officials of the Department of Public Works and Highways (DPWH) – Bulacan 1st District Engineering Office.
Named respondents were former District Engineer Henry Alcantara, former Assistant District Engineer Brice Ericson Hernandez, and former Construction Section Chief Jaypee Mendoza.
“We conducted a lifestyle check on Alcantara, Hernandez, and Mendoza. These three ex-DPWH officials had lavish lifestyles. We discovered P1.6 billion in income tax deficiencies alone after investigating their financial transactions, properties, business interests, and tax returns. This is a clear case of tax evasion,” BIR Commissioner Romeo Lumagui Jr. said in a statement Thursday.
The three face charges for tax evasion and willful failure to file or supply correct and accurate information in their income tax returns.
According to the BIR, the officials derived significant income from “proponents’ shares” or kickbacks from ghost flood-control projects, which they allegedly laundered through casino gambling.
Through records obtained from the Philippine Amusement and Gaming Corporation (PAGCOR) and licensed casinos, investigators confirmed that the officials exchanged cash for casino chips grossly disproportionate to their declared sources of income.
Further verification with the Land Registration Authority (LRA) and Land Transportation Office (LTO) revealed that the former DPWH officials owned luxury vehicles, high-value properties, and other personal assets inconsistent with their reported earnings.
“The SALNs and tax returns of Alcantara, Hernandez, and Mendoza cannot justify their lavish lifestyle. Their casino records, properties, financial transactions, and business interests are grossly disproportionate to their declared sources of income,” Lumagui said.
He added that the BIR would continue investigating government officials linked to anomalous flood-control projects, noting that this is the second batch of criminal cases filed related to the issue.
“As of now, we have filed a total of 10 criminal cases with P8.860 billion in total tax liability. Expect more tax cases to be filed,” Lumagui said.
The BIR said the case was built through a whole-of-government approach, with assistance from the Independent Commission for Infrastructure (ICI), Anti-Money Laundering Council (AMLC), LRA, LTO, PAGCOR, and licensed casinos.