BIR files tax evasion complaints vs contractors of Bulacan ghost projects

MANILA, Philippines – The Bureau of Internal Revenue (BIR) on Thursday, November 27, filed fresh tax evasion complaints with the Department of Justice against two construction firms implicated in the multi-billion flood control corruption scandal.

The bureau filed two complaints for alleged violation of the National Internal Revenue Code (NIRC) against Sally Santos, proprietor of the controversial SYMS Construction Trading. The BIR accused Santos of the following alleged acts:

• Tax evasion under Section 254 of the NIRC, punishable by a fine of not less than P500,000, but not more than P10 million; and imprisonment not less than six years, but not more than 10 years
• Failure to supply correct and accurate information under the code’s Section 255, punishable by fine of not less than P10,000; imprisonment of not less than one year, but not more than 10 years

SYMS, a Bulacan-based firm, is behind some of the ghost flood control projects flagged by government agencies. Some of the contractor’s projects were also either poorly built or overstated. President Ferdinand Marcos Jr. earlier ordered SYMS’ blacklisting.

The BIR’s complaints are hinged on the P57.73-million project for the construction of a reinforced river wall in Barangay Piel, Baliuag, Bulacan, awarded to the firm. This project was under the watch of the controversial Department of Public Works and Highways Bulacan 1st District Engineering Office then headed by Henry Alcantara.

Upon government inspection, agents found out that no project was built on the supposed location of the multi-billion contract. The BIR added that as of June 30, 2025, 100% of the contract price, amounting to P57 million, was already given to Santos.

“Since the project was found to have no actual accomplishment, no deductions should be claimed therefrom. Hence, the ratable input tax attributable to the aforesaid should be disallowed,” the bureau said.

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Another firm

The BIR also filed the same set of tax evasion complaints against IM Construction Corporation and its corporate officers, including its president Roberto Tecson Imperio and treasurer Marie Jane Manalo Imperio.

The firm, according to the bureau, has a total P7.4-million tax deficiency: P5,601,601.42 (income tax deficiency) and P1,811,989.13 (value added tax deficiency).

The complaints stemmed from the construction of a pumping station and a flood gate in Barangay Santo Rosario, Hagonoy, Bulacan, awarded on October 14, 2024, and cost P16,284,357.75. Similar to the SYMS’ case, this contract turned out to be a ghost project.

“Since the project was found to have no actual accomplishment, no deductions should be claimed therefrom. Hence, the ratable cost and input tax attributable to the aforesaid project should be disallowed,” the BIR said.

“As a result of Respondent IM’s deliberate reporting of fictitious deductions and non-existent project costs, IM Construction failed to pay the correct amount of taxes which resulted in the deprivation of the much-needed taxes due to the government,” it added.

These are the latest tax evasion complaints filed in relation to the flood control anomaly.

On November 6, the BIR filed three separate tax evasion complaints against former DPWH engineers Alcantara, Brice Hernandez, and Jaypee Mendoza over a P1.6-billion tax liability.

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The BIR also filed seven counts of tax evasion complaints on October 8 against Sarah and Curlee Discaya, and a corporate officer of their firm, St. Gerrard Construction General Contractor and Development Corporation, over a P7.1-billion tax liability. – Rappler.com