BIR goes after husband of singer-actress Donna Cruz

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

MANILA, Philippines—The husband of singer-actress Donna Cruz, a Cebu City-based ophthalmologist, has been charged with tax evasion by the Bureau of Internal Revenue (BIR) for allegedly failing to report the correct information on his tax returns for 2009 to 2011.

Charged by the BIR in the Department of Justice was Dr. Potenciano Larrazabal III who, the revenue agency said citing third party information, received P29.14 million in professional fees between 2009 and 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 taxpayer and filed the required quarterly VAT returns as his earnings were well above the threshold required to register as a VAT taxpayer.

 

Top Cebu eye doctor

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

Larrazabal is a prominent Cebu eye doctor whose family owns the Cebu Doctors’ Hospital and University.

The BIR, meanwhile, also filed criminal cases against three of its revenue officers for allegedly helping a Manila-based real estate company evade taxes in the amount of P169.83 million.

Charged were Vicente Velario, Joseph Macuha and Noradel Mendoza, the revenue officers who examined the books of accounts and accounting records from July 1, 2008, to June 30, 2009, of Philmay Property Inc.

They were charged with violating Section 253 of the National Internal Revenue Code, or willfully aiding Philmay evade taxes by not putting down the correct information on its tax returns.

Other cases

The BIR also filed tax evasion charges against Philmay and its 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 holds office in Bonifacio Global City in Taguig City.

Velario is currently assigned at BIR Revenue Region 4 in San Fernando City, Pampanga, while Macuha and Mendoza are assigned at Revenue Region 5 in Caloocan City.

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

An agreement form was completed on July 9, 2010, with the three revenue officers saying that an audit was conducted and the tax deficiency amounted to only P499,206.53. Philmay paid the taxes through the BIR’s electronic filing system on July 27 and 30, 2010.

On investigation, the BIR commissioner learned the initial assessment of the three revenue officers actually amounted to P51.96 million.

 

Paid up

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

Further investigation showed 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 June 30, 2009, representing salaries and wages. The BIR said the company should not have claimed the expense as a deduction as it failed to withhold taxes on the salaries and wages which should have been done monthly.

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  • $26606290

    Buti lang may pangbayad si doc.

    E yung BIR employees, walang pictures?

  • Albert Einstien

    DAPAT isinama sa CHARGE yun ACCOUNTING FIRM na nagCERITFY ng financial statements…ANO to SELECTIVE JUSTICE….yun corrupt taxpayers at cohorts nila nasa laya yun mga tiwaling EMPLEYADO ng gobyerno ang me kaso..kung magaling ang abogado nila…USELESS yan case sa kanila….in fact pwede sila STATE-WITNESS..ITURO lang nila yun mga INVOLVED na officers at yun taxpayer… : > )

  • noypisiTED

    O, loko kayo. Tuluyan nyo mga kawatan na ‘yan. Hindi na panahon ni Gloria Arroyo ngayon. Eto ang mga binabangit ni PNoy na patuloy na mga “wang-wang” sa gobyerno. O, buti nga sa inyo!

  • Albert Einstien

    DOF….ito ang gawin nyo para MAWALA ang KURAPSYON at INCREASE tax collection sa mga AHENSYA nyo…

    1. include sa TAX EVASION charge yun mga ACCOUNTING & LAW FIRMS….
    2. REVIEW all ISSUED DELINQUENT ACCOUNTS at PRELIMINARY ASSESSMENTS NOTICE ( PAN ) …starting 2005 up….especially on LARGE taxpayers…compare the delinquent payments & FINAL ASSESSMENT notice ( FAN ) payments for the last 8 years ..WHY there are GARGANTUAN REDUCTION of payments…..in BILLIONS ?….

    3. REVIEW & CANCEL ALL tax rulings previously ISSUED …in fact there is NO-NEED for RULINGS because there is a TAX CODE…if taxpayers will question your assessments they can question it at CTA not BIR, BOC 0r DOF …just enforce the tax code..the EFFECT of RULINGS are ETERNAL TAX EVASION…look with special concern on OIL companies, REAL ESTATE companies CASINOS & BANKS…..

    4. bring BACK the tax provision removed by congress GIVING 10% INCENTIVES to TAX INFORMERS if their information will result to tax collection ( at present the INFORMERS reward MAXIMUM is limited to 900 thousand only …IF BILLIONS of tax evasion information is at hand ..the tax evader will just GIVE 5 million to the informer ..that is the SOURCE of HUGE tax leakage )…you should include as TAX INFORMERS current & previous personnel of ALL govt agencies..including military & police intelligence personnel..you will SEE..TAX EVASION will NO LONGER be a PROBLEM….also CORRUPTION at ALL LEVELS will be eradicated…

    HEAR ME NOW….

    if you follow by HEART not by pocket these suggestions you will INCREASE COLLECTION by 300% to 1000%….good luck..!

    • berong es

      before you suggest your ideas,could you please learn how to type properly so people will put interest on what you are saying?no offense meant…thanks.

  • ERIC MEDINA

    NO WONDER HE HAS A MANSION,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, WHILE SO MANY IN CEBU LIVE IN SQUALOR

  • nano

    Can you trust a Dr. like that who cheat the government ?

  • BoyBakal

    BIR Kim Henares is celebrity star struck….that’s why she runs after movie stars in guise of collection but to sign autograph.

  • Jake Lopez

    Nice job BIR! I am just curious about the 29M peso gross in 3 years. It means the doctor was billing 40,000 pesos daily, 5 days a week for 36 months. Is this physically possible? If the doc charges 500 pesos per patient, does Cebu have that much eye patients which would turn out to be 80 patients daily?

  • ruben_bush

    bravo to the BIR!!! sa wakas nagbabago din…..sana sumunod na rin ang Customs!!!!

  • julieboy

    The rich never pay the correct taxes,all they do is complain.

  • Mark

    Shadamdadam shadadadam, kapag tumibok ang puso wala ka ng magagawa kung nd magbayad ng buwis – Dr. Potenciano Larrazabal III.

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