The Bureau of Internal Revenue (BIR) announced that the Department of Justice (DOJ) has approved the filing of forty-four (44) criminal tax cases against former Department of Public Works and Highways (DPWH) officials Jaypee De Leon Mendoza, Henry C. Alcantara, and Brice Ericson D. Hernandez. The cases involve combined tax liabilities exceeding P1.68 billion and stem from separate BIR investigations that uncovered substantial discrepancies between declared income and actual expenditures, as well as the non-filing and underreporting of tax returns over multiple taxable years.
The BIR used the expenditure method, a recognized method for reconstructing income in tax investigations, wherein unexplained expenditures exceeding reported income may be treated as evidence of unreported taxable income.
Through this method, the Bureau uncovered substantial discrepancies between reported income and actual expenditures, which formed part of the basis for the criminal complaints filed before the DOJ. Following the DOJ’s finding of probable cause, the corresponding criminal Informations may now be filed before the Court of Tax Appeals.
In three separate resolutions, the DOJ found probable cause to charge Mendoza, Alcantara, and Hernandez with tax evasion under Section 254 and related violations under Section 255 of the National Internal Revenue Code, as amended.
For Mendoza, the DOJ Resolution dated March 26, 2026, recommended the filing of sixteen (16) criminal Informations covering taxable years 2021, 2022, 2023, and 2024, involving total income tax liabilities of P179,785,191.86. The BIR investigation found significant underdeclarations of income, constituting prima facie evidence of false or fraudulent returns under the Tax Code.
In a separate Resolution dated May 30, 2026, the DOJ recommended filing eighteen (18) criminal Informations against Alcantara covering taxable years 2022, 2023, and 2024, involving total tax liabilities of P913,827,146.89. The BIR found a significant disparity between Alcantara’s income and his acquisitions. The investigation likewise established that no Income Tax Returns were filed for the covered taxable years.
For Hernandez, the DOJ issued a Resolution dated May 21, 2026, recommending the filing of ten (10) criminal Informations covering taxable years 2020, 2021, 2022, 2023, and 2024, with total tax liabilities amounting to P593,776,009.80. The BIR investigation found that Hernandez’s expenditures substantially exceeded his reported income for five consecutive years and established that no Income Tax Returns were filed for the covered taxable years.
“The DOJ’s finding of probable cause is an important milestone in the enforcement process. These cases demonstrate the Bureau’s continuing commitment to enforce the tax laws based on evidence and in accordance with the law,” Commissioner Charlito Martin R. Mendoza said.
He emphasized that the Bureau will continue pursuing tax evasion cases against individuals who conceal income, fail to file returns, or otherwise violate the country’s tax laws.
“The Bureau will continue to enforce the tax laws firmly, fairly, and consistently, while respecting due process at every stage of the proceedings,” the Commissioner added.
