DOJ tax evasion charges vs Discaya couple are set to move forward as the Department of Justice prepares to file cases involving alleged violations of the National Internal Revenue Code.

According to DOJ spokesperson Atty. Polo Martinez, the department has resolved five tax-related complaints filed against the Dismay couple, stemming from allegations of willful tax evasion and failure to provide accurate financial information. Of these cases, three were dismissed due to insufficient evidence, while two are set to be formally elevated to the Court of Tax Appeals (CTA).

Martinez said the remaining cases involve alleged violations of Section 254 of the NIRC, which penalizes the willful attempt to evade or defeat taxes, and Section 255, which covers the deliberate failure to supply correct and accurate tax information to authorities. These offenses carry significant penalties, including fines and possible imprisonment, depending on the court’s ruling.

BIR-Filed Complaints

The tax evasion cases originated from complaints filed by the Bureau of Internal Revenue (BIR) in October 2025, following a detailed investigation into the Discards’ business transactions and tax records. One of the most significant complaints, lodged on October 8, alleged that the couple failed to pay taxes amounting to ₱7.18 billion, making it one of the largest tax cases pursued by the government in recent years.

The BIR claimed that discrepancies were found between declared income and actual business earnings, prompting authorities to pursue both criminal and administrative remedies. The DOJ’s resolution marks a critical step toward judicial review, as the CTA has exclusive jurisdiction over criminal tax cases.

Legal Proceedings Ahead

With the filing of information imminent, prosecutors are expected to present evidence showing intentional acts to evade tax obligations. Legal experts note that cases under Sections 254 and 255 require proof of willfulness, making documentation and financial records central to the prosecution’s case.

The DOJ has not disclosed further details on the dismissed complaints, citing confidentiality rules and the need to protect the integrity of ongoing proceedings.

Custody and Related Cases

Apart from the tax cases, the Dismay couple is also facing separate legal challenges tied to alleged corruption and misuse of public funds.

Sarah Discaya is currently detained at the Lap-Lapu City Jail in Cebu following her arrest on December 18, 2025. She and eight co-accused were charged with graft and conversation in connection with an alleged ₱96.5-million “ghost” flood control project in Davao Occidental. Authorities allege that the project was funded but either partially implemented or never constructed, resulting in losses to the government.

Curlee Discaya, on the other hand, remains under Senate custody, as lawmakers continue to investigate his alleged involvement in irregular government contracts and related financial anomalies. Senate officials have said his detention is lawful and necessary to ensure cooperation in legislative inquiries.

Government Push vs Tax Evasion

The DOJ said the case underscores the government’s intensified campaign against large-scale tax evasion, particularly involving contractors and businesses engaged in public infrastructure projects. Officials reiterated that no individual is above the law and that enforcing tax compliance remains a priority to fund public services and development programs.

As the cases move forward, both the DOJ and BIR stressed that the filing of charges does not equate to guilt, noting that the accused will be afforded due process under the law.