THE Bureau of Internal Revenue (BIR) will conduct a tax fraud audit of contractors flagged for alleged irregularities in flood control projects, according to Tax Commissioner Romeo Lumagui Jr.
Lumagui stated that if any contractor is found to have underpaid or evaded taxes, the BIR will not issue an updated tax clearance, disqualifying them from future government procurements and suspending the final settlement of their existing government contracts.
This action follows President Ferdinand Marcos Jr.’s revelation of questionable infrastructure projects, particularly ghost flood control works that were allegedly paid for but never constructed.
Lumagui emphasized that government contractors are required to secure an updated BIR tax clearance before the final settlement of any government project, certifying that they have no outstanding tax liabilities and have duly filed and paid all applicable taxes.
He clarified that this updated clearance is different from the initial tax clearance required during the eligibility phase of the procurement process.
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