MANILA – The Bureau of Internal Revenue (BIR) filed on Friday criminal complaints with the Department of Justice (DOJ) against Sunwest Inc., its president Aderma Angelie Descarga Alcazar and treasurer Cesar Zacarias Buenaventura for tax evasion involving an estimated PHP22.71 billion deficiency income tax liability.
In a statement, BIR said the complaints are based on its findings that the company willfully underdeclared its income, claimed unsubstantiated purchases and expenses, and improperly claimed creditable withholding tax credits in its income tax returns (ITRs).
Following President Ferdinand R. Marcos Jr.'s directive for an all-out investigation into alleged irregularities in flood-control projects, the National Investigation Division issued a Memorandum of Assignment authorizing a preliminary investigation of Sunwest Inc.
BIR said results of the investigation showed substantial underdeclaration of income after comparing project payments reported by the Department of Public Works and Highways (DPWH) and the Isumbong Mo sa Pangulo platform with the amounts declared in the company's ITRs.
Based on these findings, the BIR issued a Letter of Authority authorizing the examination of the company's internal revenue tax liabilities for taxable years 2019 to 2024.
On Feb. 5, 2026, the BIR ordered the company to produce its books of accounts, accounting records and supporting documents.
When the respondent failed to fully comply, the BIR applied the Best Evidence Obtainable Rule in determining its tax liabilities.
Reconciliation of the company's records with third-party information from the DPWH, National Power Corporation and Philippine Ports Authority disclosed undeclared income totaling PHP6.29 billion for taxable years 2019 to 2024.
The BIR disallowed PHP36.63 billion in purchases and PHP3.65 billion in expenses after the company failed to provide adequate documentary support for the amounts claimed.
It also disallowed PHP291.12 million in unsupported creditable withholding tax claims.
"The BIR examined the tax compliance of the entities concerned. When our investigation establishes willful violations of the National Internal Revenue Code, we will not hesitate to file the appropriate criminal cases against the corporation and its responsible officers," BIR Commissioner Charlito Mendoza said. (PNA)
