THE BUREAU OF Internal Revenue filed today its 13th tax fraud case against those involved in anomalous flood control projects, this time involving Wawao Builders owner, Mark Allan Arevalo.
Arevalo is the owner and general manager of Wawao Builders, a major construction firm that received numerous government contracts, including high profile ghost and substandard flood control projects in Bulacan and other areas, which led to a Senate investigation and criminal charges and now, the tax fraud cases by the BIR.
P48.39M TAX DEFICIENCY
The BIR filed before the Department of Justice (DOJ) a P48.39 million tax deficiency case against Arevalo arising from a ghost flood-control project in Malolos City, Bulacan.
The complaint was filed by Revenue Commissioner Charlito Mendoza over Arevalo’s riverbank protection in Malolos, which was found to be non-existent despite his claims of full completion.
“He (Arevalo) 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,” Mendoza told newsmen.
INTERNAL REVENUE CODE
The BIR said Wawao Builders violated Sections 254 and 255 of the National Internal Revenue Code, accused of tax evasion and failing to provide accurate information in its income tax and value-added tax (VAT) returns for the first two quarters of 2024.
The bureau’s investigations revealed that Wawao Builders was awarded a P77.20 million contract for a riverbank protection structure in Barangay Caingin, Malolos, and collected P72.37 million net of withholding tax in three tranches from March to April 2025, but no such structure was ever built.
Physical verifications by the BIR and reviews by the Commission on Audit confirmed the project site remained untouched, despite reports indicating 100% completion.
“He (Arevalo) received the money, but no flood control project was actually made. It’s a ghost project,” Mendoza said.
And when Arevalo filed his returns, he declared a cost for the alleged construction of the project. But since wala naman proyektong ginawa, so yung mga dineclare niya na deductions, operating costs are fictitious,” he said.
WAWAO NOT THE LAST
Mendoza said they were reviewing more individuals linked to the flood control controversy.
“This is already the 13th case the BIR has filed. And the aggregated tax liability is now close to P9 billion na. And more cases are expected to be filed,” the official said.
BIR filed last year similar complaints against Sarah Discaya, Curlee Discaya for over P7.1 billion and other officials of contractor firms linked to the flood control issue.
In addition to the Discayas, the BIR is also preparing similar tax evasion charges against former Public Works and Highways engineers Henry Alcantara, Brice Hernandez, and Jaypee Mendoza.
P6 BILLION IN 3 YEARS
Reports said Wawao Builders has received over 85 contracts from the DPWH worth nearly P6 billion in Bulacan alone between 2022 and 2025.
During the Senate hearings, Arevalo repeatedly invoked his right against self-incrimination when asked direct questions about “ghost projects” or potential payoffs to lawmakers, which drew the ire of senators and public scrutiny.
Arevalo claimed that his company’s contractor license was “forcibly used” in a scheme to corner infrastructure projects, suggesting he may have been a “dummy” owner or involved in a broader syndicate.