44 tax raps await ‘BGC Boys’

The Bureau of Internal Revenue (BIR) said the Department of Justice (DoJ) has found probable cause to file 44 criminal tax cases against former Department of Public Works and Highways officials Jaypee de Leon Mendoza, Henry C. Alcantara and Brice Ericson D. Hernandez, collectively known as the “BGC Boys,” over alleged tax liabilities totaling more than P1.68 billion.

In a statement Thursday, the BIR said the cases stemmed from separate investigations that allegedly uncovered substantial discrepancies between the trio’s declared income and actual expenditures, as well as the non-filing and underreporting of income tax returns over several taxable years.

The bureau said it used the expenditure method, a recognized investigative technique that reconstructs income by comparing reported earnings with actual spending. Under the method, unexplained expenditures exceeding declared income may be treated as evidence of unreported taxable income.

With the DoJ’s finding of probable cause, the corresponding criminal informations may now be filed before the Court of Tax Appeals.

Mendoza faces 16 criminal informations covering taxable years 2021 to 2024 involving alleged income tax liabilities of P179.79 million.

Alcantara faces 18 criminal informations covering taxable years 2022 to 2024 involving alleged tax liabilities of P913.83 million after investigators allegedly found substantial discrepancies between his reported income and acquisitions and determined that he failed to file income tax returns during the period.

Hernandez, meanwhile, faces 10 criminal informations covering taxable years 2020 to 2024 involving alleged tax liabilities of P593.78 million. The BIR alleged that his expenditures consistently exceeded his reported income and that he likewise failed to file income tax returns.