Overview: BIR files tax evasion complaints against the Discayas
The Bureau of Internal Revenue (BIR) has 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 move centers on a substantial tax liability estimated at over P7.18 billion, covering several tax categories and years.
What the complaints allege
Official figures from BIR Commissioner Romeo Lumagui Jr. indicate the core issues involve unpaid individual income taxes for the spouses from 2018 to 2021, unpaid excise taxes on nine luxury vehicles, and unpaid documentary stamp taxes related to a supposed divestment from four Discaya-owned construction firms. The total assessed liability stands at P7,182,172,532.25, with the agency signaling that this is the beginning of a broader audit of Discaya-owned firms.
Tax compliance and due process
Lumagui emphasized that the BIR began its review in 2024 after obtaining information about the Discayas. He noted delays in filing the complaints due to the couple allegedly ignoring subpoenas, explaining the bureau’s commitment to due process and, when necessary, serving notices through multiple channels and coordinating with other government agencies.
Responses from the parties involved
The Discayas’ legal counsel, Cornelio Samaniego III, stated that the couple has yet to see the complaints filed against them. The BIR’s announcements suggest that the investigations and assessments are part of a broader effort to address tax deficiencies tied to both individual income taxes and corporate-related levies.
Context: linked probes and potential broader implications
These developments come amid an ongoing government inquiry into alleged irregularities in flood control projects. The Discaya family’s construction interests include Alpha & Omega General Contractor & Development Corporation and St. Timothy Construction Corporation, which have appeared prominently in official lists of major contractors for national flood control efforts. In public hearings, Sarah Discaya acknowledged that their firms participated in bids for overlapping flood control projects on multiple occasions, a point that has intensified scrutiny.
What comes next
According to the BIR, the current filings represent the initial focus on the Discayas’ personal tax liabilities. The agency indicated that after completing its audit of the Discaya-owned construction firms, it expects to uncover further tax deficiencies in the billions. The DOJ will review the complaints and determine whether to proceed with formal charges or request additional information.
Why this matters for taxpayers and the industry
Tax evasion cases involving high-profile builders can have broad implications, signaling to the construction sector the importance of transparent tax reporting and timely filing of returns. They also illustrate the BIR’s ongoing enforcement drive and its willingness to pursue multi-year, multi-faceted tax issues that involve both individuals and corporate entities.
Key takeaways
- BIR attributes a P7.18 billion liability to unpaid income taxes, excise taxes, and documentary stamp taxes associated with the Discayas and St. Gerrard.
- The complaints reflect due process steps, including attempts to serve subpoenas and interagency cooperation.
- The investigations are part of a larger probe into construction contracts tied to flood control projects.
