The Bureau of Internal Revenue (BIR) on Thursday, Jan. 8, filed before the Department of Justice (DOJ) a P48-million tax evasion complaint against a contractor in a “ghost” flood control project in Bulacan

BIR Commissioner Charlito Martin R. Mendoza said the complaint was filed against Mark Allan Villamor Arevalo, the sole proprietor of Wawao Builders, for violations of Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended.

Mendoza said that Arevalo failed to supply correct and accurate information in its filing of income tax and value-added tax returns for the first and second quarters of 2024.

He told journalists after personally filing the complaint before the DOJ: “This is our participation in the campaign against corruption in government projects, particularly in infrastructure projects as unveiled by President Marcos and as directed to us by Finance Secretary Frederic Go to prioritize investigation of cases relating to infrastructure projects.”

Mendoza explained that the complaint against Arevalo stemmed from the P77.2 million government infrastructure contract awarded to Wawao Builders in January 2024 for the construction of a riverbank protection structure in Malolos City.

“Arevalo received the money but no flood control project was actually made,” he said.

He also said that the BIR found that Wawao Builders collected a total of P72.37 million net of withholding taxes in three tranches from March to April of 2025.

However, Mendoza said the BIR and Commission on Audit (COA) conducted physical verification and found that there was no riverbank protection structure constructed despite reports that the project was 100 percent completed.

“So, it’s a ghost project and, when he filed his returns, he declared costs for the alleged construction of the project,” he said.

Mendoza noted that the complaint filed against Arevalo was the 13th case that the BIR has filed against contractors and the aggregate tax liability is now close to P9 billion.

One of the cases filed by the BIR and is now pending before the DOJ is the P7.1 billion tax evasion charge against contractor spouses Pacifico “Curlee” Discaya and Cezarah “Sarah” Discaya for alleged tax liabilities for the years 2018 to 2021.

Mendoza assured that the BIR will continue to investigate anomalous government flood control projects.

“Lahat po ng mga personalities na lumabas na allegedly involved sa anomalies na ito ay ini-imbestigahan po ng Bureau of Internal Revenue (All the personalities who have been tagged as allegedly involved in the anomalies are being investigated by the BIR),” he said.