The Bureau of Internal Revenue (BIR) has announced it will scrutinize contractors involved in flood control projects to determine if they have been paying the correct taxes.
BIR Commissioner Romeo Lumagui Jr. confirmed the move in a Facebook post, stressing that the probe follows President Ferdinand Marcos Jr.’s directive. “Alinsunod sa directive ng ating mahal na pangulo, magkakaroon na rin ng investigation at audit ang BIR sa mga contractors ng flood control projects,” he said.
Lumagui explained that the agency will verify whether contractors are properly declaring their income and expenses for government-funded projects. For so-called “ghost projects,” he warned that contractors could face tax deficiencies since no actual work was done. “Para sa mga contractor ng ghost projects… papatawan natin ng kaukulang tax deficiency dahil hindi tama o legal ang pagre-report ng cost and expenses dahil wala naman silang ginawa,” he added.
The BIR will cross-check contractors’ tax filings against audit reports from other government agencies. Firms found guilty of filing false reports may lose their tax clearance, effectively barring them from participating in future government project biddings.
