BIR hits Discaya couple with ₱7.1B tax evasion case over luxury cars, unfiled income taxes

The Bureau of Internal Revenue (BIR) has taken legal action against controversial contractors Sarah and Pacifico “Curlee” Discaya, filing multiple tax evasion complaints before the Department of Justice (DOJ) in connection with billions in alleged unpaid taxes.

The BIR said the Discaya couple, together with a corporate officer of St. Gerrard Construction, collectively face a tax liability reaching ₱7.1 billion. The amount covers deficiencies linked to the purchase of nine luxury vehicles and unpaid documentary stamp taxes tied to their divestment from the company.

Authorities also discovered that the couple did not file any income tax returns from 2018 to 2021, despite their companies having won hundreds of government infrastructure projects during that period.

According to the BIR, this marks only the first wave of complaints against the Discayas, noting that more cases may follow as the agency’s ongoing audit continues to uncover irregularities across their network of construction firms.

The filing intensifies the government’s pursuit of the Discayas, who have been at the center of the flood control projects controversy, a widening corruption probe into allegedly ghost and substandard infrastructure contracts worth billions of pesos.

Reports earlier showed that companies linked to the couple had cornered over ₱25 billion in flood control contracts, sparking Senate investigations and scrutiny from regulatory agencies. Several of their firms have since lost their Philippine Contractors Accreditation Board (PCAB) licenses following the public hearings, while the couple continues to face separate inquiries over luxury assets and alleged kickbacks involving public officials.