BIR, AMLC launch joint tax probe on flood scandal

By Francis Allan L. Angelo

The Bureau of Internal Revenue (BIR) and the Anti-Money Laundering Council (AMLC) have launched a coordinated investigation into alleged tax evasion and money laundering linked to anomalous flood control projects.

BIR Commissioner Romeo D. Lumagui Jr. and AMLC Executive Director Atty. Matthew M. David met on Sept. 12, 2025, with BIR auditors and AMLC investigators to align strategies for auditing contractors, public officials, and private individuals implicated in the scandal.

“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,” said Lumagui.

He explained that the AMLC’s access to bank transaction data is essential for identifying undeclared income and hidden assets revealed in congressional hearings.

“This joint BIR–AMLC investigation will ensure that all revenue streams and assets of those involved will be accounted for,” Lumagui added.

“No stone will be left unturned.”

The AMLC can legally require banks to submit financial reports on persons suspected of engaging in money laundering, a capability now being used to cross-check against BIR tax records.

Discrepancies between declared income and actual wealth observed in bank data could establish grounds for tax evasion charges, according to BIR officials.

Lumagui confirmed that the agency is conducting a sweeping tax audit across all sectors involved, stating: “The BIR will conduct a tax fraud audit of all contractors, public officials, and private individuals involved in anomalous flood control projects.”

The agency is coordinating with the Department of Public Works and Highways (DPWH), Commission on Audit (COA), Land Registration Authority (LRA), Land Transportation Office (LTO), and other government offices.

The BIR has also expressed full cooperation with inquiries by the Senate, House of Representatives, and the Independent Commission for Infrastructure.

“All available BIR personnel have been deployed for this investigation,” Lumagui said.

The probe began after President Ferdinand R. Marcos Jr. publicly identified the top 15 flood control contractors in a recent press conference.

The investigation later expanded to include additional companies and individuals based on findings from legislative hearings and reports of confirmed “ghost projects” by the DPWH and the President.