The Department of Justice (DOJ) has dismissed three excise tax cases filed against contractors Curlee and Sarah Discaya and other respondents, citing a lack of legal basis to hold them liable for the payment of excise taxes on several luxury vehicles.
In a statement released on February 3, 2026, DOJ spokesperson Polo Martinez explained that excise tax obligations fall on the importer of record, not on individuals who are not legally classified as importers. Following a careful review of the complaints, the DOJ panel found that neither Curlee nor Sarah Discaya acted as importers of the vehicles in question, effectively removing their responsibility to pay the assessed excise taxes.
“The panel determined that the excise tax is not chargeable to the Discaya spouses because the law clearly places the obligation on the importer,” Martinez said. “Since they were not importers, there is no basis to proceed with the criminal complaints.”
The dismissed cases stemmed from allegations involving several high-end vehicles. The first case covered a Land Rover/Range Rover and a Cadillac Escalade. The second involved another Land Rover and a Mercedes-Benz, while the third case centered on a Mercedes-Benz unit. Authorities initially alleged that excise taxes for these vehicles were not properly paid, prompting complaints of tax evasion.
These cases were part of the DOJ’s preliminary investigation into tax evasion complaints filed against the Discaya spouses. Initial investigations are conducted to determine whether there is sufficient evidence to establish probable cause and justify the filing of charges in court. In this instance, prosecutors concluded that the evidence did not meet that threshold for the three excise tax cases.
Despite the dismissals, the DOJ clarified that the investigation is not entirely closed. Two other related cases have been filed before the Court of Tax Appeals (CTA), where tax-related disputes and alleged violations of the National Internal Revenue Code are adjudicated. These remaining cases will proceed independently of the dismissed complaints and will be resolved based on the evidence presented before the tax court.
Legal analysts note that the ruling underscores the importance of clearly establishing the role of each party in importation and taxation cases. Under Philippine law, liability for excise tax attaches to the importer, and prosecutors must demonstrate that a respondent directly participated in or benefited from the importation process to sustain criminal charges.
For now, the dismissal marks a significant development for the Discaya spouses, as it removes three criminal complaints linked to luxury vehicle excise taxes, while attention shifts to the outcome of the cases still pending before the Court of Tax Appeals.