The Department of Justice (DoJ) on Wednesday said it has found prima facie evidence with a “reasonable certainty of conviction” to file tax evasion charges against government contractors Sarah and Curlee Discaya for alleged violations of the National Internal Revenue Code (NIRC).
In a statement, the DoJ said prosecutors found sufficient grounds to indict the couple for violating Section 254 of the NIRC for willfully attempting to evade or defeat taxes, and Section 255 for willfully failing to provide correct and accurate information.
The charges stem from two separate complaints earlier filed by the Bureau of Internal Revenue before the DoJ.
According to prosecutors, the Discayas allegedly violated Section 254 by concealing and underdeclaring their true income for taxable years 2020 and 2021.
The alleged discrepancies were tied to their respective businesses — St. Gerrard Construction General Contractor and Development Corporation and Fine Things Fashion Wear House — where they operate as sole proprietors.
The DoJ said its investigation found indications that the couple did not fully declare their earnings in their income tax filings during the covered years, resulting in potential tax deficiencies.
Prima facie evidence shows that the respondents concealed and/or underdeclared their true and correct income, the DoJ said.
Prosecutors also found grounds to charge both Curlee and Sarah Discaya under Section 255 for allegedly failing to supply correct and accurate information in their Income Tax Returns for the same period.
If convicted, violations of Section 254 may carry penalties including fines and imprisonment, while Section 255 also imposes criminal liability for submitting false or incomplete tax information.