The Bureau of Internal Revenue (BIR) filed tax evasion complaints with the Department of Justice (DOJ) on Friday against Sunwest, Inc.—a company linked to former Ako Bicol Party-list Representative Zaldy Co—over roughly ₱22.71 billion in supposed unpaid income taxes.
The state tax agency confirmed that the legal action targets both the corporate entity and several key company executives for their alleged failure to pay the correct tax liabilities.
Tax officials delivered roughly five boxes of evidentiary documents to the DOJ on July 24 to support the government’s claims.
The charges stem from a comprehensive audit covering taxable years 2019 through 2024. Investigators allege that Sunwest committed several violations, including intentionally underreporting earnings, padding unsupported business expenditures and purchases, and misusing creditable withholding tax (CWT) credits.
The formal complaint coincides with ongoing state probes into irregularities surrounding flood control initiatives, where Sunwest was flagged in connection with multiple government infrastructure projects.
Co, a former chairperson of the House Committee on Appropriations, has consistently rejected claims of wrongdoing regarding the flood mitigation projects, maintaining that Sunwest adheres to all legal and regulatory standards.