BIR slaps Discayas with tax evasion raps

BIR slaps Discayas with tax evasion raps | Daily Tribune

The Bureau of Internal Revenue (BIR) has filed criminal tax evasion cases against Pacifico “Curlee” Discaya II and Cezarah Rowena “Sarah” Cruz Discaya, along with a corporate officer of St. Gerrard Construction Gen. Contractor & Development Corporation, for a combined total tax liability of P7,182,172,532.25.

BIR commissioner Romeo Lumagui Jr. announced the filing on Wednesday, stressing that the tax deficiency is “merely the tip of the iceberg” and that the liability remains enforceable regardless of the couple’s reported bid to become state witnesses in separate corruption cases.

“We have assessed a total tax liability of P7,182,172,532.25,” Lumagui said.

“This is composed of several investigations on the unpaid individual income taxes of Curlee and Sarah Discaya, the unpaid excise taxes on their nine luxury vehicles, and the unpaid documentary stamp taxes on their supposed divestment from four Discaya-owned construction firms,” he added.

The primary case stems from the Discayas’ failure to pay billions in individual income taxes from 2018 to 2021. Lumagui cited the significant disparity between their declared income and the value of their properties and luxury assets.

Another complaint involves the failure to file a documentary stamp tax return and pay the corresponding tax on the alleged transfer or disposal of shares in four Discaya-owned construction firms — St. Gerrard, St. Timothy, St. Matthew and Alpha & Omega.

“The Spouses Discaya never divested from these companies,” Lumagui said. “They never divested because they never paid the corresponding taxes necessary for such divestment.”

Furthermore, the BIR discovered that the Discayas and St. Gerrard failed to file excise tax returns and pay excise taxes for nine luxury vehicles registered under their names.

Speaking on the couple’s reported efforts to become state witnesses in infrastructure-related corruption cases, Lumagui emphasized that tax obligations cannot be waived or offset.

“As far as the BIR is concerned, these are taxes that must be paid. Apart from the criminal case, we will still collect the P7.1 billion plus penalties,” Lumagui said, clarifying that the tax liabilities are separate from restitution in criminal trials.

“Even if they become state witnesses, they still have to pay these taxes because these liabilities are based on law, not on plea agreements,” he added.

The criminal tax evasion complaints filed before the Department of Justice do not erase the civil obligation to pay the government. The BIR is also continuing its audit of other taxable periods and related corporations under the couple’s control.

“We will file more tax evasion cases as soon as we have all the information we need,” Lumagui said, adding that the BIR is conducting “lifestyle checks and audits across the board” on contractors and high-net-worth individuals.

“We will make sure that the Spouses Discaya and their corporate officers will be imprisoned for violating our tax laws,” Lumagui said.