The Bureau of Internal Revenue (BIR) on Thursday filed a tax evasion complaint with the Department of Justice (DOJ) against former Department of Public Works and Highways (DPWH) engineers Henry Alcantara, Brice Hernandez, and Jaypee Mendoza over an estimated P1.6 billion in income tax deficiencies from 2020 to 2024.
In an ambush interview, BIR Commissioner Romeo “Jun” Lumagui Jr. said the agency will compel the former DPWH officials to pay and will pursue their properties to recover the government’s losses.
“We will compel them to pay and pursue all their assets to ensure it gets paid,” Lumagui said.
According to the BIR, a lifestyle check and review of the engineers’ Statements of Assets, Liabilities, and Net Worth (SALNs) revealed massive discrepancies between their declared income and actual spending. Investigators found that the three allegedly received kickbacks from anomalous or “ghost” flood control projects, which were laundered through casinos.
The agency said the officials exchanged huge sums of cash for casino chips that were “grossly disproportionate” to their declared sources of income.
“Because of these hearings, we’ve seen that they spend a lot in casinos. These hundreds of millions — of course, where did that come from? We verified it and found that it’s true; they really spent hundreds of millions in casinos,” Lumagui said.
The BIR also noted that the individuals acquired luxury vehicles, high-value properties, and other personal assets that far exceeded their reported earnings.
The complaint filed before the DOJ cites violations of Sections 254 and 255, in relation to Sections 24(A)(1)(a), 51(A)(1)(a), and 74(A) of the National Internal Revenue Code of 1997, as amended.
So far, the BIR has filed 10 tax evasion complaints covering more than P8 billion in total liabilities, with more cases expected.
“Again, all the personalities involved will be examined by us. We will not pick and choose. Everyone involved, everyone mentioned, all personalities will be investigated,” Lumagui emphasized.