BIR, AMLC probing persons involved in ‘ghost’ projects

The Bureau of Internal Revenue (BIR) and Anti-Money Laundering Council (AMLC) are conducting a joint investigation into contractors, public officials and private individuals linked to anomalous flood control projects.

- By MARCO LUIS BEECH

BIR Commissioner Romeo Lumagui Jr. said the agencies are coordinating to match financial records with tax filings after Congress uncovered pieces of evidence of undeclared wealth.

“The BIR is in close coordination with the AMLC in relation to the tax fraud audit of companies and individuals involved in anomalous flood control projects. The AMLC has visibility over the bank transactions of these companies and individuals,” Lumagui said.

The AMLC can compel banks to submit financial reports of companies and individuals suspected of money laundering, records that may be crosschecked with tax filings to detect possible fraud.

Lumagui said that AMLC data is vital in completing the BIR’s tax fraud audit and vowed that the joint probe would track all income and assets of those involved, leaving nothing unchecked.

“The BIR will conduct a tax fraud audit of all contractors, public officials and private individuals involved in anomalous flood control projects,” he said. “This parallel investigation extended to companies and individuals outside the top 15 contractors due to the findings of the Senate and House of Representatives hearings.”

The tax commission said bank transactions will be crosschecked with tax filings, and any mismatch between declared income and actual wealth of contractors or individuals could form the basis for tax evasion charges.

Aside from the AMLC, Lumagui said they are also in close coordination with the Department of Public Works and Highways, the Commission on Audit and the Land Registration Authority.

This comes in addition to the bureau's coordination with the Land Transportation Office, as Lumagui told The STAR, to verify the list of vehicles registered under the ownership of contractor couple Pacifico and Cezarah Discaya.