BIR files tax evasion complaints against Discaya couple and St. Gerrard
The Bureau of Internal Revenue (BIR) has formally filed multiple tax evasion complaints with the Department of Justice (DOJ) against the Discaya family—Sarah and Curlee Discaya—and a corporate officer of their construction firm, St. Gerrard Construction General Contractor and Development Corporation. The action, announced on Wednesday, October 8, centers on a reported total tax liability of P7,182,172,532.25 arising from various investigations into unpaid taxes.
The BIR’s preliminary findings allege unpaid individual income taxes for the Discaya spouses from 2018 to 2021, as well as unpaid excise taxes on nine luxury vehicles. In addition, the cases concern unpaid documentary stamp taxes linked to supposed divestments from four Discaya-owned construction firms.
BIR Commissioner Romeo Lumagui Jr. explained that the agency began reviewing the Discayas’ tax status in 2024 after receiving information about the couple. He noted that filing the complaints took time because the couple reportedly ignored subpoenas, requiring the bureau to pursue alternative means to serve notices and, when necessary, coordinate with other government agencies.
Asked for comment, the Discayas’ legal counsel, Cornelio Samaniego III, said the couple had not yet received copies of the complaints. “We will review them once they are served,” he indicated.
Commissioner Lumagui stressed that the P7.1 billion figure reflects tax deficiencies identified so far and that the announced complaints represent only the tip of the iceberg. He indicated that the BIR’s ongoing audit of the Discaya-owned construction firms should uncover further billions in potential tax deficiencies.
The case situation is set against the backdrop of a broader government probe into flood-control project contracts. The Discaya-linked entities Alpha & Omega General Contractor & Development Corporation and St. Timothy Construction Corporation were ranked among the top contractors in the country according to a Malacañang release listing. During a Senate committee investigation, Sarah Discaya acknowledged that their construction firms bid on the same government flood-control projects on multiple occasions.
Sarah Discaya also claimed in April that she had divested her shares from St. Timothy, a statement that the BIR’s findings appear to complicate given the alleged non-filing of documentary stamp taxes and the misalignment of share transfers across multiple firms.
What the allegations entail
The BIR’s case outlines several distinct tax issues:
- Unpaid individual income taxes for the Discaya spouses during 2018–2021.
- Unpaid excise taxes on nine luxury vehicles owned by or linked to the Discayas.
- Unpaid documentary stamp taxes tied to alleged divestments from Discaya-owned firms.
- Failure to file required documentary stamp tax returns for stock transfers among the Discaya companies.
Lumagui noted that more actions could follow as the BIR completes audits of the Discaya-owned firms. He reinforced the agency’s commitment to due process, while acknowledging that non-compliance can delay the filing process.
Industry and governance context
The case arrives amid heightened government scrutiny of public works contracts, including flood-control projects in which some Discaya-affiliated firms were prominent bidders. The ongoing investigations underscore the government’s broader push against tax evasion and related irregularities in high-value construction ventures.
For the Discayas and their corporate partners, the next steps involve responses to the DOJ and the potential legal proceedings that could ensue if tax liabilities are sustained or expanded through audit results and court rulings.
