The Department of Justice has decided to file two tax evasion cases against Sarah and Pacifico “Curlee” Discaya for violations of the National Internal Revenue Code in 2020 and 2021. It also dismissed three other complaints against them due to lack of evidence or expiration of the prescription period. These actions are part of a broader investigation into their flood control projects.
On February 4, 2026, the Department of Justice (DOJ) announced it will file two tax evasion cases against the couple Sarah and Pacifico “Curlee” Discaya. According to the Office of the Prosecutor General, there is prima facie evidence of violations under Sections 254 and 255 of the National Internal Revenue Code, involving concealment or underdeclaration of income in 2020 and 2021 as owners of St. Gerrard Construction General Contractor and Development Corporation and Fine Things Fashion Wear House.
The cases will be filed at the Court of Tax Appeals. Meanwhile, the DOJ dismissed three other tax-related complaints against the Discayas and their St. Gerrard Construction. One was dropped because Sarah was the consumer, not the importer, of the vehicles in question, so she is not liable for excise taxes. The other two were filed beyond the five-year prescription period under the NIRC.
These complaints were lodged by the Bureau of Immigration in October, alleging a tax liability of around P7.1 billion. The couple has been under scrutiny amid probes into anomalous flood control projects. Sarah is currently detained in Cebu on graft and malversation charges, while Curlee has been in Senate detention since last year for refusing to cooperate with the investigation. Their companies, including Alpha & Omega and St. Timothy, rank as top contractors and have previously bid simultaneously on the same government flood projects.
