MANILA — The Department of Justice (DOJ) has found probable cause to file 44 criminal tax evasion cases against three former Department of Public Works and Highways (DPWH) officials collectively known as the “BGC Boys,” paving the way for prosecution over alleged unpaid taxes totaling more than P1.68 billion, the Bureau of Internal Revenue (BIR) announced Thursday.
The cases involve former DPWH officials Jaypee Mendoza, Henry Alcantara, and Brice Ericson Hernandez, who had previously been linked to congressional investigations into alleged irregularities in flood control projects.
In a statement, the BIR said the DOJ approved the filing of the criminal cases after investigators uncovered alleged large-scale discrepancies between the officials’ declared income and actual expenditures, as well as instances of non-filing and underreporting of tax returns over several taxable years.
“The cases involve combined tax liabilities exceeding P1.68 billion and stem from separate BIR investigations that uncovered substantial discrepancies between declared income and actual expenditures, as well as the non-filing and underreporting of tax returns over multiple taxable years,” the bureau said.
According to the BIR, the DOJ found probable cause to charge all three former officials with tax evasion.
Mendoza is facing alleged income tax liabilities amounting to P179.79 million after investigators found significant underdeclarations of income, which the bureau said constitute prima facie evidence of false or fraudulent tax returns under the National Internal Revenue Code.
Alcantara, meanwhile, is facing alleged tax liabilities totaling P913.83 million. The BIR said its investigation uncovered a substantial disparity between his reported income and his acquisitions, and further established that he failed to file income tax returns for taxable years 2022, 2023 and 2024.
Hernandez is accused of incurring alleged tax liabilities amounting to P593.78 million after investigators found that his expenditures significantly exceeded his declared income for five consecutive years. The BIR also alleged that he failed to file income tax returns from 2020 to 2024.
BIR Commissioner Charlito Martin Mendoza described the DOJ’s finding as a major step in enforcing tax laws against alleged violators.
“The DOJ’s finding of probable cause is an important milestone in the enforcement process. These cases demonstrate the Bureau’s continuing commitment to enforce the tax laws based on evidence and in accordance with the law,” Mendoza said.
The three former DPWH officials had earlier figured in congressional inquiries into alleged anomalies involving flood control projects.
The allegations remain subject to court proceedings./PN
