DOJ to file tax evasion cases vs Sarah and Curlee Discaya

MANILA, Philippines – The Department of Justice (DOJ) announced on Wednesday, February 4, that it will file two tax evasion cases against couple Sarah and Pacifico “Curlee” Discaya for alleged violation of the National Internal Revenue Code (NIRC).

According to the Office of the Prosecutor General, under the DOJ, it found prima facie evidence with reasonable certainty of conviction to charge the Discayas for tax evasion under NIRC’s section 254 (willful attempt to evade or defeat tax) and section 255 (willful failure to supply correct and accurate information).

The couple is behind controversial flood control contractor St. Gerrard Construction.

“The DOJ prosecutors found that Curlee Discaya and Sarah Discaya violated Section 254 of the NIRC by concealing and/or underdeclaring their true and correct income for taxable years 2020 and 2021, in their respective capacities as sole proprietors of St. Gerrard Construction General Contractor and Development Corporation and Fine Things Fashion Wear House,” the OPG said.

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Meanwhile, the prosecutors also found that the couple had allegedly violated section 255 for failing to supply correct and accurate information in their Income Tax Returns from 2020 to 2021.

The cases will be filed with the Court of Tax Appeals, the appellate court responsible for handling tax and Customs-related cases.

Meanwhile, the DOJ dismissed the three other tax-related complaints against the Discayas and their St. Gerrard Construction. These complaints stemmed from the alleged violation of NIRC’s section 263 or Unlawful Possession or Removal of Articles Subject to Excise Tax without Payment of Tax.

The DOJ said in one of the cases, the prosecutors failed to find prima facie evidence to indict Discaya for non-payment of taxes because she was not the importer of the motor vehicles in question, but rather the consumer.

“Under the NIRC, liability for excise taxes rests with the importer, not the end consumer,” the OPG explained.

On the two other complaints against Curlee and St. Gerrard, the DOJ said it junked the complaints because they were filed beyond the five-year prescription period of NIRC cases. Prescription period is the window period where a criminal action must only be made. Different cases have different prescription periods.

The Bureau of Immigration filed the complaints with the DOJ last October where it said that the couple had alleged tax liability of around P7.1-billion or (P7,182,172,532.25).

The couple and their firms were in hot water since last year, amid the government’s ongoing probe into anomalous flood control projects.

The Discayas’ Alpha & Omega General Contractor & Development Corporation and St. Timothy Construction Corporation are the top 2 and 3 contractors in the country, based on the Sumbong sa Pangulo website. Sarah even admitted during one Senate hearing that their construction firms had simultaneously participated in biddings for the same government flood control projects on several occasions.

Sarah is currently detained due to her graft and malversation cases pending in Cebu, while Curlee has been under Senate detention since last year after he was held in contempt for not cooperating in the flood control probe. – Rappler.com