BIR files P7.1 billion tax evasion cases against Discaya couple

The Bureau of Internal Revenue has taken legal action against government contractors Sarah and Curlee Discaya for alleged unpaid taxes amounting to P7.1 billion.

The government agency has filed multiple tax evasion complaints before the Department of Justice against the Discaya couple, along with a corporate officer from their construction business St. Gerrard Construction.

The BIR claimed that their tax liability was rooted from the purchase of nine luxury vehicles as well as documentary stamp taxes related to their divestment from the company.

They also alleged that the couple did not file income tax returns from 2018 to 2021.

"Curlee and Sarah Discaya are guilty of not paying their taxes. Government contractors are engaged to do public works and are paid through public funds, there is no reason why they should not pay their own share of taxes," BIR Commissioner Romeo Lumagui Jr. said, per News5.

"The BIR will make sure that the spouses Discaya and their corporate officers will be imprisoned for violating our tax laws," he added.

According to the BIR, the tax complaint will possibly be followed by more cases as the audit of their businesses continues.

The Discaya couple is currently being investigated for their alleged involvement in the controversial flood control projects. Sarah claimed during a Senate Blue Ribbon Committee hearing that they're no longer part of the companies that have projects with the Department of Public Works and Highways.

As for their luxury cars, the Bureau of Customs had seized 28 of their vehicles in September to verify their importation records and assess duties and taxes. 

Sarah had enumerated her luxury cars during a Senate hearing, including the viral Rolls-Royce Cullinan, which she bought for P42 million, a Mercedes-Maybach (P22 million), a Bentley (P20 million), a secondhand Chevrolet Suburban (P3 million), among others.

Sen. Jinggoy Estrada asked if she acquired all of her cars at the same time, which she denied as she stated that her first purchase was in May 2021.

Eventually, Sarah recalled buying more cars before May 2021: one Range Rover Autobiography for P16 million, Defender for P7 million, and Evoque for P5 million in 2016.

The Discayas were thrown into the spotlight when Pasig Mayor Vico Sotto, whom Sarah unsuccessfully ran against in the midterm elections, posted about their controversial interviews with Korina Sanchez and Julius Babao. In the interviews, the couple talked about their "inspiring" rags-to-riches life story, showcasing their dozens of luxury cars and other assets. Babao asked them what served as their "gateway" to have a better life, and Sarah answered, "Noong nag-DPWH kami."

After Sotto's posting, the couple's story unraveled and opened a can of worms. It led to flood control projects being the talk of the town, a Bureau of Customs chase, the revocation of the Discaya companies' licenses, and congressional hearings.