Discayas face P7.1B tax evasion complaints

Metro Manila, Philippines - Contractor-couple Sarah and Curlee Discaya are facing criminal complaints over billions of pesos in tax liabilities amid the continuing probe on the alleged pocketing of public funds through infrastructure deals.

On Wednesday, Oct. 8, the Bureau of Internal Revenue (BIR) filed criminal complaints against the Discayas and its corporate officer before the Department of Justice in Manila for failing to settle P7.18 billion worth of tax obligations.

The BIR said the case stemmed from unpaid individual income taxes of the couple, unsettled excise taxes on their nine luxury vehicles, and the unpaid documentary stamp taxes on their supposed divestment from four construction firms.

The bureau noted that the Discayas failed to pay taxes from 2018 to 2021.

“Upon investigation of the BIR, spouses Discaya failed to file a documentary stamp tax return and pay the documentary stamp tax to properly execute such transfers of shares,” it said.

“This means that not only did they fail to file the return and pay the corresponding taxes, they also failed to divest from any of these four companies as its beneficial owners,” the BIR added, rejecting the couple’s claim that they have divested from St. Gerrard Construction, St. Timothy Construction Corporation, Alpha and Omega Gen. Contractor & Development Corporation, and St. Matthew General Contractor and Development.

Sarah Discaya earlier testified in the Senate that her family owns nine companies – which have sometimes bid on the same government projects. Her husband, Curlee, later recanted his wife’s statement.

BIR commissioner Romeo Lumagui said the first case is just the “tip of the iceberg.”

“Once we have finished our audit of the Discaya-owned construction firms, we expect findings of billions of tax deficiencies. We will file more tax evasion cases as soon as we have all the information we need,” he said.

The agency said tax charges will also be filed against other contractors involved in anomalous flood control deals.

The Anti-Money Laundering Council has earlier ordered the freezing of bank accounts, insurance policies, and real properties of the Discaya couple, and other suspects in the flood control mess.