BIR runs after eye doctor, realty owners

AN EYE doctor and owners of a real estate firm have been added to the roster of alleged tax evaders with complaints filed against them at the Department of Justice.

Cebu-based ophthalmologist Potenciano Sto. Domino Larrazabal III, according to the Bureau of Internal Revenue (BIR), has been cited for "willful attempt to evade or defeat tax, deliberate failure to supply correct and accurate information in his income tax returns (ITRs), and willful failure to file value-added tax (VAT) returns for taxable years 2009, 2010 and 2011."

The agency said in a statement Mr. Larrazabal is the husband of singer/actress Donna Cruz.

According to the BIR, information it obtained from records with the Philippine Health Insurance Corp., in particular the certificate of creditable tax withheld at source and professional fees payments notices, showed that Mr. Larrazabal earned ₱10.87 million in 2009, ₱8.88 million in 2010, and ₱9.38 million in 2011, or a total of ₱29.13 million.

However, the BIR said Mr. Larrazabal’s ITRs and percentage tax returns (PTR) showed he only declared an income of ₱1.48 million in 2009, ₱1.49 million in 2010, and ₱1.75 million in 2011, "underdeclaring his taxable income by ₱9.39 million or 635% in 2009, ₱7.39 million or 493% in 2010, and ₱7.63 million or 437% in 2011."

Further, the BIR said Mr. Larrazabal failed to register as a VAT taxpayer when his income of ₱3.18 million for the first quarter of 2009 exceeded ₱1.5 million, the minimum amount whereby a person should pay VAT.

"Rather, he only filed PTRs for the years 2009, 2010 and 2011 and made it appear in said returns that he only earned ₱300,000 for the 1st quarter of 2009 and ₱1.48 million for the year 2009 which would not make him liable for VAT," read the BIR statement.

Mr. Larrazabal has been assessed a tax liability of ₱21.14 million, inclusive of surcharges and interests, it added.

COLLUSION
Meanwhile, a separate complaint has been filed against Taguig City-based Philmay Property, Inc. (PPI) as well as its executives Ong Seet-Joon, Rafael Morales, Jonathan P. Ong, Benjamin Q. Lira and Michelle F. Reyes for "willful attempt to evade or defeat income tax, value-added tax, documentary stamp tax (DST) and expanded withholding tax (EWT).

Also charged were revenue officers Vicente Velario, Joseph Macuha and Noradel Mendoza who were authorized to examine PPI’s records from July 1, 2008 to June 30, 2009.

A reinvestigation showed that company officials failed to file the DST return and supply correct and accurate information on the company’s ITR and VAT return for the fiscal year ending June 30, 2009.

On a tip of "a confidential informant," the revenue agency claimed PPI "evaded the payment of the correct amount of taxes in the sum of ₱169.83 million, inclusive of surcharges and interests" after it connived with three revenue officers on the company’s deficiency taxes.

"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 ₱499,206.53," the BIR said.

"Without the cooperation of said revenue officers through the issuance of a tax assessment amounting to only ₱499,206.53 PPI could not have avoided the payment of its correct tax liabilities for the fiscal year ending 30 June 2009 which is ₱169.83 million," it added.

The BIR further noted that PPI claimed a deductible interest expense of ₱47.6 million for a loan from Maybank Philippines, Inc. (MPI).

A probe by BIR agents found out that the loan transaction was a "related transaction" since MPI is 99.99% owned by Malayan Banking Berhad (MBB) which also owns PPI by at least 59.99%.

"As such, the interest expense should not be claimed as deductible expense," read the BIR statement.

The agency also found out that PPI allegedly claimed a deductible expense worth ₱3.21 million representing salaries and wages without withholding any tax due and ₱50.2 million as operating expenses without supporting documents.

"Said schemes led to an underdeclaration of PPI’s taxable income by as much as 69.56% and the non-payment of income tax in the aggregate amount of ₱37.81 million," the BIR said.

Further, PPI allegedly failed to report ₱95.07 million of its real estate sales for 2009 which resulted in the non-payment of VAT worth ₱73.13 million, DST worth ₱15.57 million, and EWT worth ₱43.32 million. -- DEDS

For elephant’s sake, Pamela wants date with Noy By Evelyn Macairan (The Philippine Star)

elephant Mali

MANILA, Philippines - Offbeat protests, press conferences and appeals have failed to persuade President Aquino to hasten the transfer of elephant Mali to Thailand.

Will a dinner date with former Baywatch beauty Pamela Anderson work?

Anderson sent a letter yesterday to the President, asking him to have dinner with her so they could discuss the transfer of the 39-year-old elephant to a sanctuary in Thailand.

Malacañang did not comment on the invitation, but deputy presidential spokesperson Abigail Valte said the Office of the Executive Secretary had already directed the Department of Agriculture to determine the appropriate location for Mali.

Several animal rights activists have tried but failed to convince the city government of Manila and Aquino to allow the transfer of Mali, one of the main attractions at the Manila Zoo.

The People for the Ethical Treatment of Animals (PETA) said the 45-year-old model and actress also expressed gratitude to Aquino for “taking a strong, serious stance” in behalf of Mali.

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“I know that the Philippines is a great nation, and I hope you’ll help Mali by moving her to a sanctuary as soon as possible. If you find yourself in LA in the near future perhaps we can discuss this important matter over dinner,” Anderson said in her letter.

“In a world filled with political self-interest, your character and integrity are inspiring. I am concerned, however, that it has been eleven months since you became involved in Mali’s plight, yet she is still suffering in the zoo,” she added as she described Mali as “the saddest elephant in the world.”

She said a sanctuary in Thailand would be like “Malacañang for elephants.”

“In this place Mali would have the space to roam, be given care and have companion that she never experienced now that she is confined in the Manila Zoo.”

Anderson quoted Mahatma Gandhi: “The greatness of a nation and its moral progress can be judged by the way its animals are treated.”

PETA has long been campaigning for the elephant, claiming elephants could live to over 70 years in correct environment.

“However, considering her conditions at the Manila Zoo, Mali is likely to die young. The best way to save her life is to send her to a place that provides proper vet care and is more like an elephant’s natural habitat. Transferring elephants is safe and routine,” the group said. – With Aurea Calica

Civil society group backs Team Oca

By Annabelle L. Ricalde 

CALLING for a change in leadership in Cagayan de Oro City, civil society group Managsilingan Ta has openly expressed its support to the candidacy of Misamis Oriental Governor Oscar “Oca” Moreno and Councilor Edgar Cabanlas as mayor and vice mayor, respectively, including the entire ‘Team Oca.’

Mitos Ortigas, Managsilingan Ta convenor, said that the city “needs a leader who could inspire, mobilize, energize and synergize its people to feel up to the challenge of development.”

The group declared on Wednesday its support to Team Oca and the candidacy of barangay chair Rolando Uy of Barangay Carmen as congressman in the first district.

The endorsement was held a week after Managsilingan Ta endorsed the candidacy of re-electionist Rep. Rufus B. Rodriguez (second district).

The multi-group alliance also recommended a set of agenda for the endorsed candidates to fulfill once in office.

Among these: improvement of water system, health program for the poor, increased budget allotment for the J.R. Borja City Hospital, peace and order, environmental preservation and cleanliness, enforcement of traffic rules and regulations, transparency of the city hall, and balanced integrated urban-rural development.

“Managsilingan Ta believes in ‘servant leadership’ that is open to public dialogue, genuinely pro-people, and driven to promote community-development and participatory and transparent governance,” Ortigas added.

Candidates Moreno and Cabanlas are thankful to the group for the said endorsement because it has also inspired them.

Moreno said the decision of the group transcends personal consideration and preference knowing that the endorsement and support for the entire Team Oca is not that easy for the Managsilingan Ta because some of its members also have relatives from other party.

In the same way, Cabanlas also appeals to the group to give him a chance to prove his worth as there are doubts about his credibility because of his past association with Mayor Vicente Emano.

“I won’t make further explanation, hangyo ko lang, hatagi ko og chance (I ask that you give me a chance). Dako ang akong garbo nga inyong gi-endorse (It is my great pride that you have endorsed me), and what is important now is to correct the wrong system in the city government,” he added.

With these, Managsilingan Ta is hoping that the new administration will be working hand in hand with the community in order for them to become effective leaders.