Discaya couple faces P7.1-B tax charge

The Bureau of Internal Revenue (BIR) has intensified its lifestyle checks and audits on major contractors and high-net-worth individuals as it moves to enforce the P7.1-billion tax liability of spouses Pacifico and Cezarah Discaya — a case that officials say underscores the agency’s tougher stance on large-scale tax evasion.

BIR Commissioner Romeo Lumagui Jr. said the assessment against the Discayas, which covers unpaid income, excise, and documentary stamp taxes, remains fully enforceable despite the couple’s ongoing criminal case before the Department of Justice.

“The declared income was very small compared to the value of their assets. Just from the land and vehicles we found, the deficiency was already significant,” Lumagui said Wednesday.

“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 emphasized that criminal prosecution does not erase civil obligations. “Even if they face criminal conviction, they are still required to settle their tax liabilities,” he noted.

He said the assessment covers tax years up to 2021, but the bureau continues to review other taxable periods and corporations linked to the couple. “This is just the start,” Lumagui said. “We’re still auditing other years and other companies connected to them.”

The BIR chief revealed that the filing process was delayed by the Discayas’ repeated refusal to comply with audit notices.

“We had difficulty because they were uncooperative. We gave them due process, but they refused to accept our notices, so we had to resort to other legal means to serve them,” he said, noting that the agency eventually filed criminal charges for failure to obey subpoenas.

Lumagui also clarified that the couple’s reported bid to become state witnesses in separate corruption cases has no bearing on their tax liabilities.

“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 explained.

He added that payment of the P7.1 billion would not clear them of criminal accountability. “As far as the BIR is concerned, the crime of tax evasion has already been consummated. Payment does not extinguish the criminal case.”

The Discayas have until June to settle their liabilities before penalties and interest continue to mount.

Lumagui said the case forms part of the bureau’s wider effort to identify individuals and firms with disproportionate wealth. “We’re conducting lifestyle checks and audits across the board, not just for contractors."

The BIR is also working closely with other government agencies to track assets and transactions that may point to large-scale tax evasion.