The Bureau of Internal Revenue (BIR) filed criminal complaints against Sunwest Inc. and its top executives over an estimated ₱22.71 billion in unpaid deficiency income taxes, marking one of the government’s largest tax enforcement actions this year.

In a statement, the BIR said that the tax agency submitted the complaints on Friday, July 24, to the Department of Justice (DOJ), targeting the corporation along with its president, Aderma Angelie Descarga Alcazar, and treasurer, Cesar Zacarias Buenaventura.

Sunwest is a firm founded by former Ako Bicol party-list Rep. Zaldy Co.

The BIR accuses the company and its officers of willful tax evasion, underdeclaring income, claiming fictitious purchases, and improperly using creditable withholding tax credits across tax returns spanning 2019 to 2024.

The legal action stems from an intelligence-driven probe ordered under President Ferdinand Marcos Jr.’s directive to investigate alleged financial irregularities within state-funded flood-control infrastructure projects.

Following the mandate, the BIR’s National Investigation Division launched a preliminary audit comparing Sunwest’s declared earnings against payment records from government agencies, including the Department of Public Works and Highways, National Power Corp., and the Philippine Ports Authority, alongside reports submitted via the state’s Isumbong Mo sa Pangulo complaint portal.

When initial cross-checks revealed significant discrepancies between government disbursements and Sunwest’s tax returns, the BIR issued a letter of authority to formally audit the firm's financial records.

Tax authorities escalated enforcement efforts on Feb. 5 by issuing a subpoena requiring Sunwest to submit its complete accounting ledgers and supporting documents. After the company failed to fully comply with the order, the tax agency invoked the "best evidence obtainable" rule—a legal mechanism allowing authorities to compute liabilities using third-party transaction data.

Reconciling internal ledgers with government records uncovered roughly ₱6.29 billion in unreported income from 2019 to 2024. Furthermore, tax examiners rejected ₱36.63 billion in claimed purchases, ₱3.65 billion in operating expenses, and ₱291.12 million in creditable withholding tax claims after Sunwest failed to present valid supporting documents.

The disallowed deductions and unreported revenues resulted in a total tax assessment of ₱22.71 billion, a figure that includes mandatory statutory surcharges, compounding interest, and compromise penalties.

"The BIR examined the tax compliance of the entities concerned," Internal Revenue Commissioner Charlito Martin Mendoza said in a statement. "When our investigation establishes willful violations of the National Internal Revenue Code, we will not hesitate to file the appropriate criminal cases against the corporation and its responsible officers."

The charges were brought under Sections 254 and 255 of the National Internal Revenue Code of 1997 through the bureau’s Run After Tax Evaders campaign. The BIR stated that the lawsuit forms part of a broader, ongoing enforcement crackdown targeting corporate tax non-compliance across the country.