The Bureau of Internal Revenue (BIR) has issued a stern warning to contractors involved in flood control projects: failure to comply with tax obligations may result in the revocation of their tax clearance certificates, effectively barring them from participating in government public bidding.

BIR Commissioner Romeo Lumagui Jr. confirmed that the agency will launch investigations and audits into contractors suspected of involvement in questionable or anomalous flood control projects.

“We will examine whether the taxes reported by contractors on flood control projects — and their other government contracts — are accurate," Lumagui said.

The review will also cover so-called “ghost projects.”

“For ghost projects, we will check whether they reported costs and expenses,” he added. Contractors found to have declared expenses for non-existent projects could face tax deficiency assessments.

Lumagui noted that the BIR has the authority to revoke or refuse to renew tax clearance certificates, which would disqualify contractors from participating in future public bidding.