BIR Files Complaint Against Sunwest Executives Over P22.7 Billion Tax Liability

The Bureau of Internal Revenue (BIR) has initiated legal action against Sunwest Inc. and its senior executives, alleging tax evasion linked to a substantial deficiency income tax liability estimated at P22.71 billion. This complaint was formally submitted to the Department of Justice (DOJ) on Friday, marking a significant escalation in the bureau's ongoing efforts to enforce tax compliance among corporations.

Among those named in the complaint are Aderma Alcazar, the president of Sunwest, and Cesar Zacarias Buenaventura, the company's treasurer. The BIR's investigation into the tax practices of Sunwest revealed serious discrepancies in their financial reporting, prompting the bureau to take decisive action against the firm and its leadership.

BIR Commissioner Charlito Mendoza emphasized the bureau's commitment to enforcing tax laws, stating, "When our investigation establishes willful violations of the National Internal Revenue Code, we will not hesitate to file the appropriate criminal cases against the corporation and its responsible officers." This statement underscores the BIR's determination to hold accountable those who fail to comply with tax regulations.

The BIR's findings indicated that Sunwest had willfully underreported its income, made unsubstantiated claims regarding purchases and expenses, and improperly claimed creditable withholding tax (CWT) credits in its income tax returns from 2019 to 2024. Such actions are in direct violation of Sections 254 and 255 of the National Internal Revenue Code (NIRC) of 1997, as amended, which are central to the bureau's Run After Tax Evaders (RATE) Program.

In February 2026, the BIR issued a subpoena to Sunwest, requiring the company to produce its books of accounts, accounting records, and supporting documentation. This step was part of a broader investigation aimed at reconciling the company's financial records with third-party information obtained from various government agencies, including the Department of Public Works and Highways, the National Power Corporation, and the Philippine Ports Authority.

The BIR's analysis revealed that Sunwest had undeclared income totaling P6.29 billion for the taxable years 2019 to 2024. Additionally, the bureau disallowed P36.63 billion in purchases, P3.65 billion in expenses, and P291.12 million in unsupported creditable withholding tax claims. These findings contributed to the substantial tax liability assessed against the company.

As a result of these violations, the BIR has determined that Sunwest, Inc. owes a total deficiency income tax liability of P22.71 billion, which includes surcharges, interest, and compromise penalties for the specified taxable years. This case highlights the BIR's ongoing efforts to combat tax evasion and ensure compliance among corporations operating in the Philippines.

The implications of this complaint are significant, not only for Sunwest and its executives but also for the broader business community. The BIR's aggressive stance on tax enforcement signals a commitment to uphold tax laws and deter similar violations by other companies. As the case progresses, it will be closely monitored by industry stakeholders and legal experts alike, who will be watching for any developments in the legal proceedings against Sunwest and its executives.