BIR gets DOJ nod for cases vs ‘BGC Boys’

The Bureau of Internal Revenue said the Department of Justice has cleared the filing of 44 criminal tax cases against three former Department of Public Works and Highways officials over alleged tax liabilities totaling more than PHP 1.68 billion.

The cases involve Jaypee De Leon Mendoza, Henry C. Alcantara and Brice Ericson D. Hernandez, whom the BIR linked to alleged discrepancies between declared income and actual expenditures, as well as nonfiling and underreporting of tax returns over several taxable years.

The BIR said the complaints stemmed from separate investigations that used the expenditure method, a recognized way of reconstructing income in tax probes.

Under the method, unexplained expenditures that exceed reported income may be treated as evidence of unreported taxable income.

The bureau said the DOJ found probable cause to charge the three former officials with tax evasion under Section 254 and related violations under Section 255 of the National Internal Revenue Code, as amended.

Following the DOJ’s finding, the corresponding criminal informations may now be filed before the Court of Tax Appeals.

For Mendoza, the DOJ resolution dated March 26, 2026 recommended the filing of 16 criminal informations covering taxable years 2021, 2022, 2023 and 2024.

His total alleged income tax liabilities amounted to PHP 179,785,191.86.

The BIR said its investigation found significant underdeclarations of income, which may constitute prima facie evidence of false or fraudulent returns under the Tax Code.

In a separate resolution dated May 30, 2026, the DOJ recommended the filing of 18 criminal informations against Alcantara covering taxable years 2022, 2023 and 2024.

The cases involve total alleged tax liabilities of PHP 913,827,146.89.

The BIR said it found a significant gap between Alcantara’s declared income and acquisitions, and that no income tax returns were filed for the covered years.

For Hernandez, the DOJ resolution dated May 21, 2026 recommended the filing of 10 criminal informations covering taxable years 2020, 2021, 2022, 2023 and 2024.

His total alleged tax liabilities amounted to PHP 593,776,009.80.

The BIR said Hernandez’s expenditures substantially exceeded his reported income for five straight years and that no income tax returns were filed for the covered period.

“The DOJ’s finding of probable cause is an important milestone in the enforcement process. These cases demonstrate the Bureau’s continuing commitment to enforce the tax laws based on evidence and in accordance with the law,” BIR Commissioner Charlito Martin R. Mendoza said.

He said the bureau will continue pursuing tax evasion cases against individuals who allegedly conceal income, fail to file returns or violate tax laws.

“The Bureau will continue to enforce the tax laws firmly, fairly, and consistently, while respecting due process at every stage of the proceedings,” Mendoza added.