Manila: The Bureau of Internal Revenue (BIR) and the Anti-Money Laundering Council (AMLC) are set to jointly investigate firms and individuals implicated in fraudulent flood control projects. This collaboration aims to address potential tax evasion and money laundering activities associated with these projects.
According to Philippines News Agency, BIR Commissioner Romeo Lumagui Jr. and AMLC Executive Director Matthew David have discussed the possibility of filing tax evasion and money laundering charges against the involved parties. The discussions took place during a meeting on September 12. Lumagui emphasized the importance of working closely with the AMLC, which can access bank transaction data crucial for the BIR’s tax fraud audit. This data will help reveal any undeclared wealth or income identified by Senate and House investigations.
Lumagui assured that the joint investigation will leave “no stone unturned” in accounting for all revenue streams and assets of those involved. The AMLC, with its authority to demand bank reports on suspected money laundering entities, will analyze these reports alongside tax returns and payments as part of the tax fraud audit.
The BIR has issued a warning that discrepancies between declared wealth in bank records and tax payments could lead to tax evasion charges. Lumagui stated that the BIR will conduct thorough tax fraud audits on all contractors, public officials, and private individuals linked to the questionable flood control projects. The agency is coordinating with multiple government bodies, including the AMLC, Department of Public Works and Highways (DPWH), Commission on Audit (COA), Land Registration Authority (LRA), and Land Transportation Office (LTO), and is prepared to assist with investigations by the Independent Commission for Infrastructure, Senate, and House of Representatives.
The BIR’s investigation has been ongoing since President Ferdinand R. Marcos Jr. identified the top 15 flood control contractors. This probe has expanded to include additional companies and individuals based on findings from legislative hearings, with particular attention given to contractors involved in ghost projects confirmed by the President and the DPWH.