Dona Cruz’s doctor-husband, real estate firm face tax evasion raps

3 revenue officers also charged for abetting ‘crime’

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Dr. Potenciano “Yong” Larrazabal III and wife Donna Cruz. INQUIRER FILE PHOTO

MANILA, Philippines — The Bureau of Internal Revenue filed on Thursday a criminal complaint against a Cebu City-based ophthalmologist for evading taxes and failing to supply the BIR with correct and accurate information in his tax returns for 2009 to 2011.

The criminal complaint was filed at the Department of Justice against Dr. Potenciano Sto. Domingo Larrazabal III, husband of singer-actress Dona Cruz.

Citing third party information, the BIR said Larrazabal received a total of P29.14 million in professional fees from 2009 to 2011 from PhilHealth alone but declared only P4.72 million for the three-year period.

The BIR said Larrazabal should have registered as a value added tax payer and filed the required quarterly VAT returns as his earnings was well above the threshold required to register as a VAT taxpayer.

Larrazabal allegedly under-declared his income, did not pay the correct income tax, failed to pay the VAT and file his VAT returns.

The BIR computed Larrazabal’s deficiency taxes for the three-year period at P21.14 million.

Meanwhile, the BIR also filed criminal cases against three revenue officers for helping a Manila-based real estate company evade taxes, and sued the real estate company for P190.97 million in unpaid taxes.

Charged were Vicente Velario, Joseph Macuha and Noradel Mendoza for violating Section 253 of the National Internal Revenue Code by willfully aiding Philmay Property Inc. in evading taxes and not putting the correct information in its tax returns with the BIR.

The BIR also filed tax evasion charges against Philmay and its responsible corporate officers: president Ong Seet-Joon, treasurer Rafael Morales, corporate secretary Jonathan Ong, sales and marketing department head Benjamin Lira and accountant Michelle Reyes.

Philmay is a real estate company that used to hold office at Legaspi Towers along Roxas Boulevard and has relocated to Bonifacio Global City in Taguig City.

The BIR alleged that Velario, Macuha and Mendoza were the revenue officers first authorized to examine Philmay’s book of accounts and accounting records from July 1, 2008 to June 30, 2009.

Velario is currently assigned to BIR Revenue Region No. 4 in San Fernando City, Pampanga while Macuha and Mendoza are currently assigned at the BIR Revenue Region No. 5 in Caloocan City.

The BIR said Philmay declared a P50.64-million loss in its annual income tax return for the fiscal year ending June 30, 2009. Velario, Macuha and Mendoza were sent to investigate its books. The three made it appear that Philmay’s deficiency taxes amounted to only P499,206.53.

An agreement form was completed on July 9, 2010, with the revenue officers saying that an audit examination was conducted and that the deficiency tax amounted to only P499,205.53. Philmay paid the taxes through the BIR’s electronic filing payment system on July 37 and 30, 2010.

Upon investigation, the office of the BIR commissioner learned that the initial assessment of the three revenue officers actually amounted to P51.96 million and the case was further scrutinized.

The BIR said it learned that Philmay paid its creditor, Maybank Philippines Inc. P61.18 million, with interest expenses amounting to P47.6 million.

Further investigation showed that Philmay is an affiliate of Maybank and that the loan was a related party transaction. Malayan Banking Berhad owns 99.99 percent of Maybank and 39.99 percent of Philmay.

Philmay also claimed a deductible expense amounting to P3.21 million for the fiscal year ending 30 June 2009 representing salaries and wages. The BIR said the company should not have claimed the expense as a deduction as it failed to withhold any tax on the salaries and wages, which should have been done monthly.

The company also claimed P50.21 million in operating expenses in its income tax return for that year that included salaries, allowances, fringe benefits and interest expenses that were not supported by any document.

The BIR said Philmay also did not report P95.07 million of its real estate sales for the year in its value added tax return nor did it pay the necessary documentary stamp taxes for the transactions or the expanded withholding tax.

The BIR computed Philmay’s deficiency taxes, including surcharge and interest, at P169.83 million, broken down into P37.81 million in deficiency income tax, P73.13 million in deficiency value added taxes and P15.57 million in documentary-stamp tax deficiency and P43.32 million in expanded withholding tax.

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  • Rizal Bayani

    Marami pa ang katulad na kaso nito involving BIR officers na nakikipagsabwatan sa mga malalaking kumpanya. BIR should strengthen its drive against its own employees conniving with big companies to defraud the government of needed tax. Lifestyle check these employees, file necessary cases to facilitate the recovery of their properties.

  • cato_the_younger

    As a class of professionals, doctors are probably among the biggest tax cheats in the country. By using the Philhealth data, this shows that BIR is smartening up. If there is political will, there is a way. BIR could use government contracts too to audit the private businesses that deals with the government since many of these businesses are tax cheats too.
    By the way, Donna’s husband also belongs to the same clan as Lucy Torres. They’re the same clan that had ruled Leyte forever, their businesses denuding the mountains and giving rise to the Ormo0c tragedy. Yet somehow, the people of Leyte keep on electing them.

    • txtman

      PALIBHASA MADAMI SA MGA PULPOL NA MGA DOCTORS DYAN
      AY MGA KAMAG-ANAK NG MGA POLITIKO
      MOST OF THE DOCTORS NA
      NASA HIGHER POSITIONS SA MGA HOSPITALS
      EH EITHER KAMAG-ANAK OR DOCTOR NG MGA POLITIKO
      IN SHORT
      DOCTORS ARE ALSO CORRUPT
      MALIBAN PA SA MGA MUKHANG PERA
      PITIFUL

      • txtman

        MAY NADINIG NA BA KAYONG NAGREREKLAMONG HOSPITAL NGAYON?
        WALA
        BAKIT?
        KASI, TIBA-TIBA SILA SA PHILHEALTH
        LALONG TUMAAS ANG BAYARIN SA HOSPITAL
        DOUBLE-DOUBLE ANG BAYAD
        PHILHEALTH, THE MILKING COWS OF DOCTORS & HOSPITALS
        PITIFUL

      • txtman

        BAKIT NAMAN KASI DOCTOR
        ANG NAGPAPATAKBO SA PHILHEALTH?
        HINDI BA TAWAG DYAN
        CONFLICT OF INTEREST?
        SIMPLE LANG HINDI BA?
        PITIFUL

  • BOYPDAF

    How about the List of Senators?

  • txtman

    MADAMI PA SA KANILA DYAN
    LALO NA MGA UP-PGH MAFIA MEMBERS LIKE CABRAL
    IMAGINE ONE DOCTOR DYAN
    ONCOLOGIST, CLINIC NIYA SA TAPAT NG PGH
    PROFESSIONAL FEE NIYA SA PAG-INJECT (IV) SA CHEMO
    EH, 10, 000 PESOS PER SESSION (ONE HOUR)?
    HINDI NA SIYA NAHIYA?
    .
    SUPER-MAHAL NA NGA ANG CHEMO DRUGS
    WALA NA NGA PERA MGA CANCER PATIENTS
    PAMBILI NA NGA LANG NILA NG CHEMO DRUGS
    NILAMUN PA NIYA
    TAPOS, MANGUNGULEKTA PA SIYA SA PHILHEALTH?
    KAPALMUKS- WALA PA RESIBO KASI MASMAHAL DAW KUNG MAY RESIBO
    PITIFUL

    • txtman

      HINDI LANG YAN
      NAGBAYAD KA NA SA KANILA
      TAPOS MAGUNGULEKTA SILA SA PHILHEALTH
      DOUBLE-DOUBLE BAYAD
      KAPALMUKS
      KAYA TIGNAN MO SILA SA DECEMBER
      DAMI-NILANG PERA
      PITIFUL

      • txtman

        EVERYTIME NA BIBILI SILA NG ALAHAS
        OR MAGPAPATAYO NG KUNG ANO-ANO
        MAG-OOPERA MGA YAN
        GANYAN SILA KAKAPALMUKS
        MARAMI SA MGA DOCTORS
        AY PARANG MGA LINTA
        MAY SAKIT KA NA NGA
        GAGATASAN KA PA!
        TAPOS SASABIHIN NG MGA UP-PGH MAFIA LEAD
        ….. BY CABRAL & ONA, PRO-POOR DAW SILA?
        PWEEEEEEEEEE!
        PITIFUL

      • txtman

        TOTOO BANG PRO-POOR YAN UP-PGH MAFIA LEAD
        ……. BY CABRAL?
        ETO SAGOT
        SILA YUNG PUMATAY SA PATIENT RIGHT BILL
        NA PINAPASULONG NI TITA KORING NOON
        A GROUP OF DOCTORS LEAD BY UP-PGH MAFIA
        PUMUNTA KAY DE VENECIA
        KASI NAMAN KAMAG-ANAK DAW NI DE VENECIA YUNG
        ……. ISANG TAGA-UP MAFIA
        KAYA HAYAN, ISANG SALITA LANG NI DE VENECIA
        WALA NA ANG PATIENTS RIGHT BILL
        YAN BA ANG PRO-POOR?
        PITIFUL

  • joshmale2004

    BIR should not let up on its fight against tax cheater companies or individuals. Tamaan ang tamaan. All guilty should go to jail and pay penalties and back taxes to set an example how serious our situation because of these cheats. If BIR can catch up with these cheats, the government no longer need to create new taxes and impose tax increases for the ordinary worker.
    If Kris Aquino can declare her correct income and pay her correct taxes, why can’t others especially high income earners? Nakakahiya kayo.

    • txtman

      BAKIT SIYA LANG?
      AT LEAST 20,000 DOCTORS PA
      MGA KAPAL-MUKS MGA YAN
      PITIFUL

      • txtman

        ISAMA MO NA RIN MGA TALYERS DYAN
        PARANG MGA ASWANG DIN MGA YAN
        MADALAS, PARANG NAG-OPERA NA RIN SILA
        PAG NAGPAGAWA KA NG SASAKYAN
        ABA, KUNG MANINGIL PARANG MGA DOCTORS DIN
        MGA KAPAL-MUKS
        FAKE PA MGA RESIBO NILA
        PITIFUL

    • http://enria.org/ scconcern

      BIR salot ng Bayan, sila mismo nag kukurakot. Kailagan diyan may independenteng Tax Court na ang maghusga ay groupo ng professional accountants… isang CPA academian, CPA sa business group, CPA sa COA at pamumunuan ng Justice malawak nag kalaman sa Accounting. Sa paraan ito may katarugan, fair playing field sa lahat at mawala ng kurakot ng BIR. Isama na rin ang BOC.

  • jorgii0550

    Good Job BIR…..keep up the good work!

    • http://enria.org/ scconcern

      Anong good work!!!!! umpisa palang yan, susunod hihingi ng lagay ang opisyal ng BIR, para maayos . Kailagan diyan may independenteng Tax Court na ang maghusga ay groupo ng professional accountants… isang CPA academian, CPA sa business group, CPA sa COA at pamumunuan ng Justice malawak nag kalaman sa Accounting. Sa paraan ito may katarugan, fair playing field sa lahat at mawala ng kurakot ng BIR. Isama na rin ang BOC.

      • jorgii0550

        You need to give credit where credit is due.

        Filipinos are beginning to trust the BIR now and it seems the changes that they are implementing are working, so just stop accusing them and give them a chance.

      • http://enria.org/ scconcern

        You give credit not to individual but to the betterment of the system…It is been a long time, we expected for change…Did it happen, no, maybe temporarily like what is happening now. What we need is a complete new better idea for long term improvement, no room for corruptions and fair playing field for everyone. I still believe an independent en banc tax court will be of great help and improvement.

  • http://enria.org/ scconcern

    Kailagan diyan may independenteng Tax Court na ang maghusga ay groupo ng professional accountants… isang CPA academian, CPA sa business group, CPA sa COA at pamumunuan ng Justice malawak nag kalaman sa Accounting. Sa paraan ito may katarugan, fair playing field sa lahat at mawala ng kurakot ng BIR. Isama na rin ang BOC.

  • UrHONOR

    ANG TALAGANG MALAKAS KUMITA DYAN NA HINDi tama ang binabayad na buwis ay ang mga PLASTIC SURGEONS, Skin professionals, at mga aboga*o. Ang laki-laki maningil peo ang liit-liit magbayad ng tax. Pero, op kors, mabuti na din yan sa wala, tulad ng mga simbahan na bari-bariles kung kumita…24/7. All income, no expenses.

  • $23455908

    MARAMI PANG GANYANG BIR EMPLOYEES DITO SA CAVITE LALO NA SA TRECE MARTIREZ CITY, ROSARIO,TANZA, GEN TRIAS NA ANG MGA BIR EMPLOYEES SOBRANG NAGSIYAMAN DAHIL SA CORRUPTION.

  • Guest

    ay! LP mga kamag-anak niya sa ormoc…si Lucy torres at asawa…

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