The Bureau of Internal Revenue (BIR) will initiate a tax fraud investigation into contractors allegedly involved in anomalous flood control projects flagged by President Ferdinand Marcos Jr.
In a statement released Tuesday, August 26, BIR Commissioner Romeo Lumagui Jr. announced that the agency will audit the tax returns and payments of the entities in question.
BIR regional offices have also been instructed to closely monitor developments in the President’s investigation and conduct parallel audits on implicated contractors.
Should any contractor be found to have underpaid or evaded taxes, the BIR will withhold updated tax clearances, disqualify them from future government procurement, and suspend their existing contracts with the government.
This directive aligns with Revenue Regulation No. 17-2024, which mandates that government contractors must secure an updated tax clearance from the BIR before the final settlement of any government contract.
Commissioner Lumagui emphasized that the BIR will ensure all contractors in the country pay the correct taxes.
“It is unacceptable for these contractors to profit from billions in taxpayer-funded projects while failing to pay the proper taxes,” he said.
In cases involving reported ghost flood control projects, if it is confirmed that no actual work was done, the BIR will issue deficiency tax assessments against the contractors involved. (ZIA LUNA)
