The Bureau of Internal Revenue will investigate whether the contractors for flood control projects are correctly reporting their taxes.

BIR Commissioner Romeo Lumagui Jr. said they are also going to check audit reports of other agencies.

Those who are found to have false tax reports may lose their tax clearance, which will disqualify them from joining biddings for government projects.

For contractors of ghost projects, Lumagui said they will be imposed a tax deficiency since they do not have any project to begin with.

“Para sa mga contractor ng ghost projects, sisilipin natin kung nagrereport sila ng cost and expenses patungkol sa nasabing project, at kung nagrereport sila ng cost and expenses sa isang ghost project, papatawan natin ng kaukulang tax deficiency dahil hindi tama o legal ang pagre-report ng cost and expenses dahil wala naman silang ginawa,” he explained.