The Department of Justice (DOJ) has authorized the filing of criminal tax evasion charges against high-profile contractors Cezarah Rowena “Sarah” Cruz Discaya and Pacifico “Curlee” Discaya II.
Following a preliminary investigation, the DOJ panel of prosecutors resolved to elevate two separate tax cases to the Court of Tax Appeals (CTA).
The charges stem from a series of complaints filed by the Bureau of Internal Revenue (BIR) involving an estimated ₱7.1 billion in alleged tax liabilities accumulated between 2018 and 2021.
According to DOJ spokesperson Atty. Nicollo “Polo” Martinez, the cases include violations of Section 255 of the National Internal Revenue Code, which pertains to the willful failure to supply correct and accurate information in tax returns.
The BIR’s initial complaints alleged that the couple failed to pay individual income taxes and excise taxes on nine luxury vehicles registered in their names.
Furthermore, the bureau flagged unpaid documentary stamp taxes related to the couple’s claims that they had divested from several construction firms, including St. Gerrard Construction and Alpha & Omega General Contractor & Development Corp.
The BIR maintains the couple never legally divested from these entities.
The Discaya spouses are central figures in a broader government investigation into alleged anomalies in multi-billion peso flood control projects.
Sarah Discaya is currently in the custody of the National Bureau of Investigation (NBI) following a separate arrest warrant for malversation and graft related to an infrastructure project in Davao Occidental.
Curlee Discaya had been previously detained at the Senate after being cited in contempt during a Blue Ribbon Committee inquiry into the flood control mess.
The DOJ is expected to file the formal information before the CTA within the week.