BIR files charges vs Bulacan ‘ghost project’ contractors

Two contractors involved in ghost flood-control projects in Bulacan were charged by the Bureau of Internal Revenue (BIR), through Commissioner Charlito Martin R. Mendoza, in a complaint filed at the Department of Justice on Thursday.

Charged are IM Construction Corporation, SYMS Construction Trading, and their responsible officers for multiple violations of the National Internal Revenue Code (NIRC) of 1997.

Combined assessments for IM Construction Corporation and SYMS Construction Trading amount to P13.8 million in total tax deficiencies arising from fictitious expenses, underreported income, and false VAT declarations.

They were charged with violation of Section 254 or Tax Evasion, and Section 255 or Willful Failure to Supply Correct and Accurate Information. Both violations carry heavy fines and imprisonment.

Mendoza explained that these cases are part of a broader and intensified crackdown on contractors engaged in ghost projects and fraudulent tax practices.

He said the BIR is conducting expanded audits of related contractors and individuals, and will file more criminal complaints in the coming weeks.

“They took public money meant to protect families from flooding, and built nothing. That is corruption at its most shameless.

The BIR will not allow contractors to enrich themselves through fake projects and falsified tax filings. We will pursue every offender, recover every peso, and continue filing criminal charges until this practice ends,” stressed Commissioner Mendoza, emphasizing the importance of tax compliance and integrity in public infrastructure projects.

With the latest filings, the BIR has now filed a total of 12 criminal complaints linked to anomalous flood-control projects, with estimated total potential tax liabilities of ₱8.87 billion under investigation.

The BIR investigation showed that IM Construction Corporation received payments for the construction of a pumping station and flood gate in Barangay Sto. Rosario, Hagonoy. Physical verification confirmed that no structure of any kind was built.

With zero actual accomplishment, the company’s claimed project costs, deductions, and input taxes were entirely fictitious, resulting in significant tax deficiencies. These false declarations constitute a deliberate, willful attempt to evade taxes while misusing public funds intended for critical flood-control infrastructure.

The investigation further shows that SYMS Construction Trading collected 100 percent of the contract amount for a reinforced river wall in Barangay Piel, Baliuag. However, inspections confirmed that no reinforced river wall was constructed on site.

Because the project had no actual accomplishment, the taxpayer had no legal basis to claim deductions or input taxes. The false filings submitted by SYMS Construction Trading reflect a clear, intentional effort to conceal income and evade taxes derived from a fully paid but non-existent government project.