BIR slaps tax raps on Wawao Builders over Bulacan ghost flood project

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January 8, 2026 | 12:27pm

MANILA, Philippines — The Bureau of Internal Revenue (BIR) filed tax evasion complaints against Mark Arevalo, sole proprietor of Wawao Builders, over a multi-million peso tax deficiency linked to a "ghost" infrastructure project.

The complaint was filed by the BIR, through Tax Commissioner Charlito Mendoza, at the Department of Justice on Thursday, January 8, over Arevalo’s estimated tax liability of P48.39 million stemming from a riverbank protection project in Malolos City, Bulacan, which was found to be non-existent despite claims of full completion.

“He (Arevalo) received the money, but no flood control project was actually made. So, it's a ghost project, and then when he filed his returns, he declared costs for the alleged construction of the project,” Mendoza said in an interview with reporters.

According to the BIR, Wawao Builders violated Sections 254 and 255 of the National Internal Revenue Code, accused of tax evasion and failing to provide accurate information in its income tax and value-added tax (VAT) returns for the first two quarters of 2024.

The bureau’s investigations revealed that while Wawao Builders was awarded a P77.20 million contract for a riverbank protection structure in Barangay Caingin, Malolos, and collected P72.37 million by April 2025, no such structure was ever built.

Physical verifications by the BIR and reviews by the Commission on Audit confirmed the project site remained untouched, despite reports indicating 100% completion.

To date, the BIR has filed a total of 13 criminal complaints linked to anomalous flood-control projects, with total potential tax liabilities across these cases reaching a staggering P8.92 billion.

Previous tax complaints were filed by the bureau against contractors Sarah and Curlee Discaya in October 2025, and in November 2025, against contractor Sally Santos.