I agree with tobias in as much that yes in can be done. But then why isn't it done more often? The cheap option of a large plastic receptacle or a glass tank that you maybe have lying around probably trumps the option of building a plywood version.
It could be costly from a financial point of view, unless you're just using up materials from a larger plywood tank build. Also, I think a little more consideration would have to go into the building of it, especially if it's for underneath your display tank in an enclosed area. As mentioned, the humidity, in time, would play havoc with your plywood sump unless you coated the tank inside AND maybe outside with your chosen sealant.
As mentioned, there's easier options.
It could be costly from a financial point of view, unless you're just using up materials from a larger plywood tank build. Also, I think a little more consideration would have to go into the building of it, especially if it's for underneath your display tank in an enclosed area. As mentioned, the humidity, in time, would play havoc with your plywood sump unless you coated the tank inside AND maybe outside with your chosen sealant.
As mentioned, there's easier options.