BIR secures 19 vehicles tied to Discayas' P7.18B tax cases

The Bureau of Internal Revenue (BIR) on Wednesday took into custody 19 motor vehicles connected to the P7.18 billion tax liabilities of contractors Curlee and Sarah Discaya.

In a statement, the BIR said the Bureau of Customs (BOC) released the motor vehicles to them.

“We are here to preserve assets and protect the government’s ability to collect taxes, while fully observing due process,” said BIR Commissioner Charlito Martin Mendoza.

Mendoza explained that upon release of the vehicles, the BIR “immediately implemented appropriate remedies under the National Internal Revenue Code (NIRC), in accordance with existing laws and regulations.”

“These are administrative in nature and form part of ongoing tax investigation and collection proceedings,” the BIR commissioner said.

Of the 19 vehicles secured, 15 that were registered under the Discayas’ names were placed under constructive distraint.

This allows the BIR to secure and preserve assets while tax-related concerns are under investigation. 

Four more vehicles were placed under constructive seizure due to ongoing tax assessment and collection efforts against the Discayas’ St. Gerrard Construction General Contractor & Development Corporation. 

In a separate statement, the BOC said the 19 vehicles were part of 32 motor vehicles placed under its control in September 2025 for an investigation. This was after a Manila court issued a search warrant.

The BOC later determined violations of customs laws in 13 vehicles, subjecting these to forfeiture proceedings. The forfeited 13 vehicles generated more than P102 million in proceeds after an auction.

“Meanwhile, the remaining nineteen (19) units were subjected to a transaction audit, which the Bureau of Customs (BOC) completed in October, one month after the operation. The audit confirmed full compliance with applicable importation requirements, including the submission and validation of documents, payment of correct duties and taxes, and post-clearance verification, with no discrepancies noted,” the BOC added.

The BIR thanked the BOC for its proper inter-agency coordination and for ensuring that “proper documentation, inventory, and acknowledgment procedures were observed throughout the process.”

In 2025, the BIR initiated criminal proceedings through the Department of Justice (DOJ) against the Discayas in connection to more than P7.18 billion in tax liabilities.

The agency also demanded payment from St. Gerrard Construction General Contractor & Development Corporation for a final deficiency tax liability of over P998 million. — JMA, GMA News