P1.7 Billion Tax Cases Hit Former DPWH Officials

The Department of Justice approved criminal tax charges against three former Department of Public Works and Highways officials, the Bureau of Internal Revenue said Thursday. The combined liabilities total P1.687 billion.

Jaypee De Leon Mendoza, Henry Alcantara, and Brice Ericson Hernandez face 44 separate cases covering taxable years from 2020 to 2024. Alcantara’s is the biggest – P913.83 million in tax liabilities across 18 counts. Mendoza owes P179.79 million over 16 counts. Hernandez faces 10 cases for P593.78 million.

BIR investigators used the expenditure method to find gaps – reported income that fell far short of actual spending. None of the three filed income tax returns for the years in question, the DOJ resolutions said.

The DOJ found probable cause for tax evasion under Section 254 of the National Internal Revenue Code and related violations under Section 255, which covers failure to file returns and supply correct information.

Tax chief Charlito Martin Mendoza called the DOJ findings “an important milestone in the enforcement process.” The cases will go to the Court of Tax Appeals.

The charges are the first time the BIR has pursued high-ranking DPWH officials for tax evasion using the expenditure method, according to a person familiar with the agency’s enforcement record. Infrastructure contractors and procurement offices in the Philippines may face tighter scrutiny of financial disclosures, several lawyers who handle government contracts said.

For the three officials, a conviction can mean prison terms and fines. For the DPWH, the cases come as the agency ramps up spending on public works projects. Any delay in approvals or contract releases could slow that pipeline, though the DOJ’s findings do not directly affect ongoing projects.

The BIR expects to begin filing the cases before the Court of Tax Appeals in the coming weeks.