MANILA — The Department of Justice (DOJ) heard criminal tax evasion charges filed by the Bureau of Internal Revenue (BIR) against contractor couple Pacifico “Curlee” Discaya II and Cezarah Rowena “Sarah” Discaya, involving alleged unpaid taxes totaling PHP7.1 billion.

“The spouses Discayas submitted their counter affidavits in relation to the cases filed by BIR for violation of Sections 263, 254, and 255 of the NIRC of 1997, as amended,” DOJ spokesperson Nicollo “Polo” Martinez told reporters.

Martinez said the parties may submit a reply affidavit on Dec. 5 and a rejoinder affidavit on Dec. 19, “after which, the case will be submitted for resolution.”

The BIR filed charges on Oct. 8 following investigations into unpaid individual income taxes, unpaid excise taxes on nine luxury vehicles, and unpaid documentary stamp taxes related to the couple’s alleged divestment from four Discaya-owned construction firms from 2018 to 2021.

General Information Sheets of the four firms indicate several transfers or disposals of shares, which the Discayas claimed during legislative hearings on flood control projects. However, the couple reportedly failed to file documentary stamp tax returns and pay the corresponding taxes to complete the transactions.

The BIR said the spouses never divested from St. Gerrard, St. Timothy, St. Matthew, and Alpha & Omega, and that no record exists of any return or payment for such divestments.

The agency also found that the couple failed to file excise tax returns and pay excise taxes for nine luxury vehicles registered in their names, according to Land Transportation Office records. (PNA)