Manila seeks P255M in unpaid taxes from flood project contractors, warns of legal action

Manila Mayor Isko Moreno has ordered a crackdown on nearly a hundred contractors involved in the capital’s flood control projects who have allegedly failed to pay a total of ₱255 million in taxes to the city government.

Among the contractors are companies linked to controversial figures Curlee and Sarah Discaya, whose firms reportedly bagged about ₱3 billion worth of projects but still owe around ₱23 million in contractor’s tax.

“Obligasyon nila ito sa lungsod ng Maynila. We are only here to enforce it,” Moreno stressed, warning that non-payment would result in criminal complaints, blacklisting from future government projects, and denial of essential permits. “Kung magpahuli kayo, lalo lang kayong magkakaproblema.”

Out of the 315 flood control projects, only nine—amounting to ₱8.09 million—have been fully settled. The rest remain delinquent despite the City Treasurer’s Office having already issued Statements of Account (SOA) to the concerned firms. The city has so far confirmed that 86 notices were officially received, while 192 were sent via courier due to distant project locations. Three notices remain undelivered due to address changes.

Moreno said companies that refuse to settle will not only face legal consequences but may also be blocked from securing future permits from the City Engineering Office and the Office of the Building Official. Civil cases may also be filed if the city determines there was damage to public property due to substandard or unfinished work.

Among the firms cited are Amethyst Horizon Builders and Gen. Contractor and Development Corporation, St. Timothy Construction Corporation, and Great Pacific Builders and General Contractor Inc., all reportedly tied to the Discayas.

The city is offering a six-month tax amnesty program that allows contractors to settle their dues without penalties, surcharges, or interest. “It’s cheaper to pay today than after the amnesty expires,” Moreno emphasized.

The issue comes as the Bureau of Internal Revenue (BIR) also stepped in by issuing a letter of authority to Sarah Discaya and other contractors, granting tax officials the right to examine their financial records to determine tax compliance.

“Ang mahirap nito, yung ordinaryong pamilya, nagpapagawa ng bahay, sinisingil ng contractor’s tax, building permit, zoning permit. But these big companies, nasanay sila na walang gobyerno sa Maynila. Those days are over,” Moreno declared.