DOJ cites ‘reasonable certainty of conviction’ in Discaya tax case

The Department of Justice (DOJ) has cleared the filing of criminal charges against government contractors Sarah Discaya and Curlee Discaya after finding prima facie evidence that they committed tax evasion—concluding that the evidence on record shows a “reasonable certainty of conviction.”

In a statement released Wednesday, the DOJ said prosecutors are preparing to charge the couple for alleged violations of the National Internal Revenue Code, particularly Section 254, which penalizes the willful attempt to evade or defeat tax, and Section 255, which covers the willful failure to supply correct and accurate information.

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The cases arose from separate complaints filed by the Bureau of Internal Revenue (BIR) and jointly evaluated by DOJ prosecutors.

The DOJ said its review showed that the Discayas concealed or underdeclared their true and correct income for taxable years 2020 and 2021, constituting a violation of Section 254.

Authorities cited their respective roles as sole proprietors of St. Gerrard Construction General Contractor and Development Corporation and Fine Things Fashion Wear House in committing the alleged offenses.

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Prosecutors also found prima facie evidence that both Sarah and Curlee Discaya violated Section 255 by failing to supply correct and accurate information in their income tax returns for the same taxable years.

The DOJ based its findings on an investigation into the couple’s tax filings linked to the two business entities, stressing that the tax cases are separate from other ongoing investigations involving the Discayas.*