Dentist faces P31.64-M tax evasion rap

Posted at 08/28/2014 2:00 PM | Updated as of 08/28/2014 4:37 PM

MANILA, Philippines – A dentist from Caloocan City is facing tax liabilities amounting to P31.64 million, according to the Bureau of Internal Revenue (BIR).

The BIR said Dr. Alexander Garcia, who is operating under business name Sacred Heart Dental Center, has been slapped with charges of willful attempt to evade or defeat tax, and deliberate failure to supply correct and accurate information in his income tax return (ITR) in 2011, 2012 and 2013.

Garcia is also charged with deliberate failure to file his value added tax (VAT) returns and failure to register as VAT taxpayer for taxable years 2011, 2012 and 2013.

BIR said Garcia’s case stemmed from data showing that he earned income of P42.45 million from 2011 to 2013, but he only declared P2.98 million in his ITRs for the three-year period.

The tax agency also said that further investigation revealed that through access letters sent to credit card companies whose services were utilized by his clients, Garcia underdeclared his correct taxable income by 1,492 percent or P13.30 million in 2011, 966 percent or P9.65 million in 2012 and 1,516 percent or P16.52 million in 2013.

Under Sec. 248 (B) of the Tax Code, under-declaration of taxable income by more than 30 percent constitutes a prima facie case of fraud.

BIR said Garcia also failed to register as VAT taxpayer considering that the amount of his service fees starting in 2011 exceeded the threshold amount of P1.92 million.

Separate criminal complaints were also slapped against two delinquent individual taxpayers and two delinquent corporate taxpayers.

Evangeline Sertesa, a contractor and merchandising broker, and Socorro Viar, a grocery owner, were charged for willful failure to pay taxes in 2007.

Sertesa was sued for deficiency tax liabilities for taxable year 2007 amounting to P52.77 million while Viar was assessed deficiency tax liabilities for taxable year 2007 in the sum of P11.16 million.

Two firms and their officers were also charged with willful failure to pay taxes in taxable years 2006 and 2008.

Interactive Mobile At Extremes Solutions Company and its general manager/managing director Rino Capati, treasurer Jason Vidaure, and corporate secretary Mitchelle Lirazan were assessed deficiency tax liabilities for taxable year 2006 in the sum of P7.43 million.

Emerald Multi-Resources & Manufacturing Corp., its president Ernesto Cruz, treasurer Dianne Patricio, vice-president Cayetano Virayo, and corporate secretary Vivian Andaluz, meanwhile were assessed deficiency tax liabilities for taxable year 2008 in the sum of P13.8 million.