The Bureau of Internal Revenue (BIR) has filed tax evasion complaints against Mark Arevalo, owner of Wawao Builders, over a P48.39 million tax deficiency from a non-existent flood control project in Malolos, Bulacan. The P77.20 million project received P72.37 million in payments, yet no structure was built despite claims of 100% completion. This marks the 13th such complaint by the BIR, with total potential tax liabilities reaching P8.92 billion.
On January 8, the Bureau of Internal Revenue (BIR) filed complaints at the Department of Justice against Mark Arevalo, sole proprietor of Wawao Builders, for violations of Sections 254 and 255 of the National Internal Revenue Code. The charges involve tax evasion and providing inaccurate information in income tax and value-added tax returns for the first two quarters of 2024.
BIR investigations showed that Wawao Builders secured a P77.20 million contract for a riverbank protection structure in Barangay Caingin, Malolos City, Bulacan. The firm collected P72.37 million by April 2025, but no structure was ever constructed. BIR physical verifications and a Commission on Audit review confirmed the project site remained untouched, despite reports claiming 100% completion.
"He 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," BIR Commissioner Charlito Mendoza told reporters.
This is the 13th criminal complaint filed by the BIR related to anomalous flood-control projects, with total potential tax liabilities across cases amounting to P8.92 billion. Previous complaints targeted contractors Sarah and Curlee Discaya in October 2025, and Sally Santos in November 2025. These incidents highlight broader issues in managing infrastructure funds in the country.