The Bureau of Internal Revenue (BIR) will file criminal complaints against public officials and contractors allegedly involved in flood control anomalies who are found to have committed tax violations.
BIR Commissioner Romeo Lumagui Jr. said this in an ambush interview with reporters after meeting with the Independent Commission for Infrastructure (ICI) at its office in Taguig City on Tuesday. According to Lumagui, the BIR is coordinating with the ICI and other government agencies to investigate the government officials and contractors named in the flood control probe for possible tax evasion.
‘As far as the BIR is concerned, we are looking at the tax angle here, which includes possible tax deficiencies and tax evasion as a criminal case. So for this particular criminal case, we will be the ones to file it. That’s why we will gather all the information involved in the ongoing investigations,’ Lumagui said in Filipino.
According to the BIR commissioner, the first criminal complaint may be filed this week or next, as the agency continues compiling comprehensive evidence on certain personalities.
‘Maybe this week or next, we will file some initial criminal cases. But again, these are not yet complete; we will only be filing cases on specific issues for now,’ he said. Lumagui also mentioned that there are already certain personalities who could serve as complainants in the cases they plan to file. ‘Even before, we had already checked the tax compliances, other information, and reported revenues. We are also conducting lifestyle checks on the contractors and other personalities being mentioned,’ he explained.
‘Billions of taxes being chased’
When asked how much in taxes the BIR is pursuing from personalities allegedly involved in flood control anomalies, Lumagui said, ‘Definitely in the billions.’
‘Because in a particular case, in just one taxable year for a single taxpayer, we already found a billion in tax evasion,’ the BIR commissioner noted.
‘As for the total amount, we still don’t know yet because our examination and collation of information and data from other government agencies are still ongoing,’ he added.
‘Pay for deficiency tax, be rotten to jail’
According to Lumagui, those found liable for tax evasion will face penalties, including payment of deficiency taxes, and may also face imprisonment depending on the amount evaded.
‘First, we will collect the deficiency tax-the amount they were supposed to pay,’ Lumagui said in Filipino. ‘Second, if it is found that there was criminal intent, such as fraud, a criminal case for tax evasion will also be filed. So they will pay the deficiency tax and face a criminal complaint.’ ‘If the Department of Justice prosecutes the case, the penalty could include imprisonment,’ he added, noting that those who evade billions in taxes may face more than 10 years in jail.