Tax evasion charges involving P13.8 million were filed by the Bureau of Internal Revenue (BIR) against the owners and corporate officers of two construction companies in “ghost” flood control projects in Bulacan.

Named in the complaints filed by BIR Commissioner Charlito Martin R. Mendoza before the Department of Justice (DOJ) were the owners and officers of SYMS Construction Trading and IM Construction Corporation.

They were charged with multiple violations of National Internal Revenue Code (NIRC) of 1997, particularly, for tax evasion under Section 254, and willful failure to supply correct and accurate information under Section 255, Mendoza said.

He said the case against SYMS and its proprietor Sally N. Santos covers the income tax returns that were filed in the first and second quarters of 2025.

“For Sally Nicholas Santos, ang kanya pong tax liability ay P6.4 million (she has a total tax liability of P6.4 million),” he also said.

Mendoza explained: “Ito po ay may kaugnayan sa isang flood control project sa Baliwag City in Bulacan na supposedly construction of reinforced river wall (this involves the construction of a supposedly reinforced river wall in Baliwag City in Bulacan.”

“Nakatanggap po s’ya na kabayaran sa kontrata subalit walang nagawang flood control project. Nagfile po s’ya ng tax return sa Bureau of Internal Revenue at nagdeklara ng deductions or construction costs. Since wala naman po actual na proyekto na nagawa e ‘di ibig sabihin ho fictitious ho itong deductions, non-existent, at ito po ay ginawa lamang para maiwasan ang pagbabayad ng tamang buwis (She received payment for the contract but there was no flood control project constructed. She filed tax returns with the BIR and declared deductions or construction costs. Since there is no construction, this means the deductions are fictitious or non-existent and this was done to avoid paying the right taxes),” he said.

In the case of IM Construction, Mendoza said the case covers the income tax returns it filed in the fourth quarter of 2024 and involves the ghost construction of a pumping station and flood control gate in Barangay Sto. Rosario in Hagonoy, Bulacan.

“Nagbayad ang gobyerno, nagfile sila ng return, nagdeklara sila ng deductions o construction costs. Subalit ghost po ang project. Wala naman po talagang nagawang proyekto. So samakatuwid ‘yung mga deductions na ‘yun, construction costs, ay walang basehan, fictitious at ginawa lamang para maiwasan ang pagbabayad ng tamang buwis (The government made payments, IM filed a tax return and declared deductions or construction costs. But it was a ghost project. There was no project done. So, the deductions have no basis, fictitious and made to avoid paying the right taxes,” he said.

Mendoza assured: “May susunod pa tayong mga kaso na isasampa laban sa mga tiwaling flood control contractors (we will file more cases against unscrupulous flood control contractors).”

Apart from contractors, he said the BIR is also investigating other personalities including government officials.

“Tinitingnan po natin ang lahat ng ebidensya. Maliwanag po ang direktiba ng ating Pangulo na pananagutin ang lahat ng nasasangkot sa mga anomalyang ito regardless of the personalities involved (We are looking at the evidence. The directive of the President is clear and that is to hold accountable all involved in the anomalies regardless of the personalities),” he also said.

With the latest filing, Mendoza said there are now 12 criminal complaints linked to anomalous flood-control projects, with an estimated total tax liabilities of P8.87 billion.