MANILA — The Bureau of Internal Revenue (BIR) filed tax evasion charges before the Department of Justice against IM Construction Corp., SYMS Construction Trading, and their responsible officers over alleged ghost flood-control projects in Bulacan.

BIR Commissioner Charlito Martin Mendoza said the two firms were assessed with PHP13.8 million in total tax deficiencies stemming from fictitious expenses, underreported income, and false VAT declarations. The respondents were charged under Section 254 (Tax Evasion) and Section 255 (Willful Failure to Supply Correct and Accurate Information) of the National Internal Revenue Code.

IM Construction was paid for a pumping station and flood gate in Barangay Sto. Rosario, Hagonoy, but physical verification confirmed that no structure was built. The company’s claimed project costs, deductions, and input taxes were entirely fictitious.

SYMS Construction Trading collected full payment for a reinforced river wall in Barangay Piel, Baliuag, but inspections confirmed no wall was constructed. The BIR said the false filings reflected an intentional effort to conceal income and evade taxes from a fully paid but non-existent government project.

“These false declarations constitute a deliberate, willful attempt to evade taxes while misusing public funds intended for critical flood-control infrastructure,” the BIR said. Mendoza added: “They took public money meant to protect families from flooding, and built nothing. That is corruption at its most shameless. The BIR will not allow contractors to enrich themselves through fake projects and falsified tax filings.”

He said the BIR is conducting expanded audits of related contractors and individuals and expects to file more criminal complaints in the coming weeks. The agency has now filed 12 criminal complaints linked to anomalous flood-control projects, with potential tax liabilities totaling PHP8.87 billion under investigation.

(PNA)