The Department of Justice (DOJ) has found prima facie evidence to charge government contractors Pacifico “Curlee” Discaya II and Cezarah Rowena “Sarah” Discaya with tax evasion.
In a statement released Wednesday, February 4, 2026, the DOJ announced that prosecutors found “reasonable certainty of conviction” to indict the couple for violations of the National Internal Revenue Code (NIRC).
Specifically, the couple will face charges for willful attempt to evade or defeat tax (Section 254) and willful failure to supply correct and accurate information (Section 255).
The cases stem from the alleged concealment and underdeclaration of their true income for the taxable years 2020 and 2021.
According to DOJ spokesperson Atty. Polo Martinez, the couple failed to provide truthful information in their Income Tax Returns (ITRs) during their tenure as sole proprietors of several construction firms.
The two tax cases are set to be filed before the Court of Tax Appeals (CTA) due to the substantial amount of taxes involved.
While the DOJ greenlit these indictments, it simultaneously dismissed three other tax complaints against the spouses.
These dismissed cases pertained to alleged non-payment of excise taxes on luxury vehicles.
Prosecutors ruled that as end-consumers rather than the actual importers of the vehicles, the Discayas could not be held liable for excise taxes under the law.
The Discaya couple, who own several major construction firms including St. Gerrard Construction, have been central figures in a high-profile investigation into multibillion-peso flood control projects.
Sarah Discaya is currently in detention over separate graft and malversation charges, while Curlee Discaya remains under Senate custody.
