THREE former officials of the Department of Public Works and Highways (DPWH) are facing criminal tax charges after the Bureau of Internal Revenue (BIR) uncovered years of unfiled tax returns, underreported income and tax liabilities amounting to more than P1.68 billion.
The bureau on Thursday said the Department of Justice (DOJ) approved the filing of criminal tax cases against former DPWH officials Jaypee De Leon Mendoza, Henry Alcantara, and Brice Ericson Hernandez after separate investigations showed significant discrepancies between their declared income and actual expenditures, as well as instances of non-filing and underreporting of tax returns.
The cases involve combined tax liabilities amounting to P1.687 billion, and are expected to be brought before the Court of Tax Appeals following the DOJ’s finding of probable cause.
“The DOJ’s finding of probable cause is an important milestone in the enforcement process,” Tax chief Charlito Martin Mendoza said. “These cases demonstrate the Bureau’s continuing commitment to enforce the tax laws based on evidence and in accordance with the law.”
Mendoza said that through the expenditure method, investigators discovered substantial gaps between reported income and actual spending patterns.
Of the three cases, the largest involved Alcantara, whose tax liabilities reached P913.83 million.
In a resolution last May 30, the DOJ recommended the filing of 18 cases against Alcantara covering taxable years 2022, 2023 and 2024.
The BIR found a significant disparity between Alcantara’s reported income and his acquisitions during the period. It also established that no income tax returns were filed for the covered taxable years.
Mendoza faces 16 criminal cases covering taxable years 2021 to 2024, involving total tax liabilities of P179.79 million.
In its March 26 resolution, the DOJ found probable cause to charge Mendoza with tax evasion and related violations after the BIR uncovered what it described as significant underdeclarations of income. The agency s aid the findings constituted prima facie evidence of false or fraudulent tax returns under the National Internal Revenue Code.
Hernandez faces 10 criminal cases involving tax liabilities of P593.78 million.
The DOJ recommended the filing of charges covering taxable years 2020 to 2024 after BIR investigators found that Hernandez’s expenditures substantially exceeded his reported income for five consecutive years.
The DOJ resolutions cited probable cause to charge the three former officials with tax evasion under Section 254 of the National Internal Revenue Code, as amended, along with related violations under Section 255.
Section 254 penalizes willful attempts to evade taxes, while Section 255 covers failures to file returns, supply correct information, or comply with other requirements under the Tax Code.
