BIR lodges P7.18 billion tax evasion complaints vs Discaya family and St. Gerrard
The Bureau of Internal Revenue (BIR) has formally filed multiple tax evasion complaints with the Department of Justice (DOJ) against Sarah and Curlee Discaya, and a corporate officer of their firm, St. Gerrard Construction General Contractor and Development Corporation. The action was announced on Wednesday, October 8, as the government intensifies scrutiny of high-profile contractors amid ongoing probes into flood control projects.
What the charges allege
BIR Commissioner Romeo Lumagui Jr. said the total tax liability under investigation amounts to 7,182,172,532.25 Philippine pesos. The assessment covers several areas: unpaid individual income taxes of the Discaya spouses for 2018 to 2021, missing excise taxes on nine luxury vehicles, and unpaid documentary stamp taxes tied to alleged divestments from four Discaya-owned construction firms.
“Although we have already discovered P7.1 billion in tax deficiencies, the cases filed today are merely the tip of the iceberg. These cases focused more on individual tax liabilities of spouses Discaya. Once we have finished our audit of the Discaya-owned construction firms, we expect findings of billions of tax deficiencies,” Lumagui explained in a press briefing.
Due process and legal process
Lumagui emphasized that the BIR follows due process in pursuing these cases, noting that some notices were not promptly accepted by the respondents. To ensure service, the agency has resorted to additional channels, including correspondence with other government agencies, in line with standard investigative practice.
Asked for comment, the Discayas’ counsel, Cornelio Samaniego III, said they have yet to review the complaints against the couple. The response suggests the defense will scrutinize the specifics of the allegations once formal documents are received.
Context: broader probes into construction projects
The tax case unfolds as the government continues investigations into questionable flood control projects linked to the Discaya family. Their companies, Alpha & Omega General Contractor & Development Corporation and St. Timothy Construction Corporation, have reportedly ranked among top contractors in the country per a Malacañang release. Sarah Discaya acknowledged in a Senate inquiry that their firms participated in bidding on some of the same flood control projects, raising concerns about potential conflicts of interest and bid-rigging risks.
In April, Sarah indicated she divested her shares from St. Timothy, a move that may be scrutinized within the ongoing audit framework. The BIR’s latest findings include alleged non-filing and underpayment of documentary stamp taxes with respect to transfers or disposals of stock interests in several Discaya-owned firms.
What happens next
The DOJ will review the BIR complaints to determine whether there is probable cause to file formal charges. If charges are pursued, the case would proceed through the Philippine legal system, with the possibility of court hearings and determinations on liability and penalties. The outcome will hinge on whether the evidence supports the tax deficiencies claimed by the BIR, and whether the Discayas and their corporate officers complied with all applicable tax obligations.
Why this matters for taxpayers and contractors
Beyond the individuals involved, the case underscores the government’s ongoing focus on tax compliance among high-income earners and major construction firms. It also highlights the complex nature of tax liabilities in corporate structures where personal and corporate assets intersect, and where documentary stamp taxes, excise taxes, and income taxes may be intertwined with corporate reorganizations and share disposals.
For the general public, the case signals a continued push for transparency and fair play in government procurement and project financing. Stakeholders will be watching how due process and judicial review shape the ultimate resolution of these high-profile tax disputes.
