The Bureau of Internal Revenue (BIR) on Thursday filed criminal complaints before the Department of Justice (DOJ) against two Bulacan-based contractors accused of executing “ghost” flood control projects and evading a combined ₱13.8 million in taxes.
BIR Commissioner Charlito Martin Mendoza identified the respondents as SYMS Construction Trading, owned by Sally Santos, and IM Construction Corp., owned by Robert Imperio.
The firms allegedly claimed fictitious expenses, underreported income, and submitted false VAT declarations.
They now face charges for tax evasion under Section 254 and for willful failure to provide correct information under Section 255 of the National Internal Revenue Code.
Mendoza said the cases form part of a broader clampdown on fraudulent infrastructure projects and tax manipulation schemes.
“They took public money meant to protect families from flooding, and built nothing. That is corruption at its most shameless. The BIR will not allow contractors to enrich themselves through fake projects and falsified tax filings,” he said.
He added that expanded audits are underway, with more complaints expected.
“We will pursue every offender, recover every peso, and continue filing criminal charges until this practice ends,” he said.
Investigators found that IM Construction received full payment for a pumping station and flood gate in Barangay Sto. Rosario, Hagonoy, but no structure existed onsite. SYMS Construction similarly collected full payment for a reinforced river wall in Barangay Piel, Baliuag, but inspectors found no project built.
The BIR said the discrepancies showed “a deliberate, willful attempt to evade taxes while misusing public funds intended for critical flood-control infrastructure.”