The Bureau of Internal Revenue (BIR) on Thursday filed a tax evasion complaint before the Department of Justice (DOJ) against a construction firm owner for allegedly failing to pay more than ₱48 million in taxes linked to a supposed “ghost” flood control project in Malolos City.
The respondent was identified as Mark Allan Arevalo, sole proprietor of Wawao Builders, whom the BIR accused of receiving government payment for a flood mitigation project that was never constructed.
BIR Commissioner Charlito Martin Mendoza said Arevalo violated Sections 254 and 255 of the National Internal Revenue Code of 1997, after allegedly receiving funds from the Department of Public Works and Highways (DPWH) despite non-implementation of the project.
“He received the money, but no flood control project was actually built,” Mendoza told reporters.
According to BIR investigators, Wawao Builders was awarded a ₱77.2 million contract in January 2024 to build a riverbank protection structure in Barangay Caingin, Malolos City. Between March and April 2025, the firm allegedly collected ₱72.37 million, net of withholding taxes, in three tranches.
Mendoza said Arevalo later declared construction expenses and operating costs in his tax returns, which the BIR claimed were fabricated.
“It’s a ‘ghost’ project and when he filed his returns, he declared costs for the alleged construction of the project. But since wala pong proyektong ginawa, so ‘yung mga dineclare niya doon na deductions, operating costs are fictitious and inexistent,” he said.
The BIR chief added that the investigation goes beyond Arevalo.
“Lahat ng personalities na involved, ongoing ang investigation namin. We just have to make sure na maliwanag ang batayan natin kapag nag-file tayo ng kaso,” Mendoza said.
The complaint marks the 13th case filed by the BIR involving flood control anomalies, including multiple tax evasion cases against contractor-couple Curlee and Sarah Discaya, who are facing criminal prosecution over alleged unpaid income taxes exceeding ₱7.1 billion from 2018 to 2021.