2 contractors face BIR criminal complaints over ghost flood-control projects in Bulacan

Ghost Projects Exposed BIR Cracks Down on Contractors in Bulacan

As the construction industry continues to evolve and adapt to new technologies, tools, and trends, it's crucial for contractors to prioritize transparency and accountability. Recently, the Bureau of Internal Revenue (BIR) took a decisive stance against fraudulent practices by filing criminal complaints against two contractors accused of engaging in ghost flood-control projects in Bulacan.

The BIR has filed complaints against IM Construction Corporation and SYMS Construction Trading, alleging that both companies engaged in fraudulent activities resulting in a combined tax deficiency of P13.8 million. According to the BIR's Commissioner Charlito Martin Mendoza, these cases are part of an intensified crackdown on contractors involved in ghost projects and fraudulent tax practices.

### The Allegations

IM Construction Corporation is accused of receiving payments for a pumping station and flood gate in Sto. Rosario Village, Hagonoy, but physical inspections revealed that no structure was built. As a result, the company's claimed project costs, deductions, and input taxes were deemed entirely fictitious.

SYMS Construction Trading allegedly collected the full contract amount for a reinforced river wall in Piel Village, Baliuag, but investigations confirmed that the wall was never constructed. The company's tax filings were deemed a deliberate effort to conceal income and evade taxes from a fully paid yet non-existent government project.

### The Consequences

Both contractors face charges of Tax Evasion (Section 254) and Willful Failure to Supply Correct and Accurate Information (Section 255), violations that carry heavy fines and imprisonment. With these two filings, the BIR has now lodged 12 criminal complaints linked to anomalous flood-control projects, with potential total tax liabilities under investigation reaching P8.87 billion.

The BIR's actions demonstrate its commitment to holding accountable those who engage in fraudulent practices, including contractors involved in ghost projects. This crackdown sends a strong message to the industry there will be consequences for those who fail to adhere to ethical and legal standards.

In conclusion, this blog post underscores the importance of transparency and accountability in the construction industry. As professionals continue to revolutionize their craft, it's essential to prioritize honesty, integrity, and compliance with regulations.

Note I made minor changes to improve readability, grammar, and tone, while maintaining the original content.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.