Internal income bureau (BIR) will investigate violationsTOR allegedly involved in abnormality Flood control projects may According to CommisRomeo D. Lumagui, Little
“BIR will conduct a parallel investigation of contractors related to irregular flood control projects. We will support the President’s Crusade by reviewing tax returns and payments for these entities,” Mr Lumagui said in a statement Tuesday.
The tax agency’s investigation was at Ferdinand R. Marcos, Jr. About corruption in public works, parModel in flood control.
Mr Marcos identified 15 contractors earlier this month, with about 20 per cent or 100 billion pesos of flood control projects from the Filipino Pesos budget since 2022.
Mr Lumagui said the tax fraud investigation will focus on contractors for these abnormal flood control projects identified by Mr Marcos.
“If any contractor taxes or tax evasion are found, BIR will not issue them an updated tax permit. The contractor will be disqualified from participating in future government procurement and will suspend the final settlement of its existing government contracts,” he said.
Under Revenue Regulations (RR) No. 17-2024, the contractor must obtain updated tax liquidation from the BIR before ultimately resolving any government contract.
The BIR said that failure to introduce this liquidation would result in a moratorium on the contract settlement and a tax lien on the government’s contract amount.
The updated license guarantees that each Contractor has no outstanding tax liabilities and has been appropriately filed and paid for all applicable taxes.
The BIR clarified that the document is different from the initial tax clearance required for the eligibility phase of the procurement process.
These provisions under Articles 2 and 3 of RR No. 17-2024 are intended to protect public funds from contractors who do not comply with tax obligations.
In addition, Article 235 of the Internal Taxation Act authorizes BIR to conduct multiple audits within the same taxable year in cases involving fraud or violations, as determined by the Commissioner.
Earlier this week, public works and highways announced that the district engineer Abelardo D. Calalo was suspended, allegedly providing about 3.13 million cash to Rep. Leandro L. Leviste, Batangas, to discourage investigations into abnormalities in flood control projects.
Meanwhile, Mr Lumagui said that once BIR obtains official certification from relevant institutions without actual projects, those contractors participating in the “Ghost” project will undergo a defect tax assessment.
“If BIR is certified or accredited by the appropriate government agency and confirms that the Flood Control Project is a ghost project, we will not allow all related costs and expense claims,” he said.
“No project means non-deductible fees. A tax under-assessment will be issued accordingly.”
The Senate and the House have investigated alleged violations in the flood control program. – Aubrey Rose A. Inosante
