By Journal Online

Copyright journal

Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. held a meeting together with Executive Director Matthew David of the Anti-Money Laundering Council (AMLC) last September 12, 2025. Together with auditors from the BIR and investigators from the AMLC, the two agencies discussed how tax evasion and money-laundering charges may be filed against companies and individuals involved in anomalous flood control projects.

“The BIR is in close-coordination with the AMLC in relation to the tax fraud audit of companies and individuals involved in anomalous flood control projects. The AMLC has visibility over the bank transactions of these companies and individuals. This data is crucial in completing the tax fraud audit of the BIR because the Senate and House of Representatives investigations show that there is undeclared wealth or income. This joint BIR-AMLC investigation will ensure that all revenue streams and assets of those involved will be accounted for. No stone will be left unturned,” Commissioner Lumagui stated.

The AMLC has the power to require the submission of bank reports on companies and individuals that are suspected to be engaged in money laundering. These bank reports and transactions can be analyzed with tax returns and payments in conducting a tax fraud audit. If the wealth of the contractor or individual as stated in bank records does not have corresponding tax payments, then there is a case for tax evasion.

“The BIR will conduct a tax fraud audit of all contractors, public officials, and private individuals involved in anomalous flood control projects. The BIR is already in coordination with the AMLC, DPWH, COA, LRA, LTO, and other government agencies. The BIR is also ready to cooperate with the investigation of the Independent Commission for Infrastructure, the Senate, and the House of Representatives. All available BIR personnel have been deployed for this investigation,” Commissioner Lumagui stated.

The BIR has been conducting a parallel investigation since President Bongbong Marcos Jr. announced the top 15 flood control contractors in a press conference. This parallel investigation extended to companies and individuals outside the top 15 contractors due to the findings of the Senate and House of Representatives hearings. The BIR has also taken into account which contractors have Ghost Projects that were confirmed by the President and the Department of Public Works and Highways.