BIR files P48.39-M tax raps against contractor in Bulacan ‘ghost’ project

THE Bureau of Internal Revenue (BIR) has filed a criminal complaint with the Department of Justice against a major flood control contractor for allegedly evading P48.39 million in taxes from a government-funded project.

BIR Commissioner Charlito Martin R. Mendoza said on Thursday that the respondent, owner of Wawao Builders Corp., allegedly violated the tax code by filing inaccurate income tax and value-added tax returns for the first two quarters of 2024. The contractor reportedly claimed deductions for a nonexistent riverbank protection project in Malolos City, Bulacan.

“He received the money, but no flood control project was actually carried out. It’s a ghost project. Yet when he filed his tax returns, he declared costs for the supposed construction,” Mr. Mendoza told reporters.

Wawao Builders is among the top 15 contractors identified by President Ferdinand R. Marcos, Jr. as having secured a large share of flood control projects over the past three years.

The company has also been permanently blacklisted by the Department of Public Works and Highways.

Records show that Wawao Builders received funding in three tranches totaling P72.37 million from March to April 2025 for the P77.20-million project, which was awarded in January 2024. Despite reports claiming the project was fully completed, audits by the BIR and the Commission on Audit found no evidence of actual construction, the agency said.

This latest filing brings the BIR’s total to 13 criminal complaints involving irregular flood control contracts. To date, the agency is investigating approximately P8.92 billion in potential tax liabilities linked to these anomalous projects. — Erika Mae P. Sinaking