|Donna Cruz and husband Dr. Potenciano Sto. Domingo Larrazabal. Photo taken from Cruz's Instagram page.
MANILA, Philippines - The Bureau of Internal Revenue (BIR) on Thursday filed a criminal complaint against Cebu-based ophthalmologist Dr. Potenciano Sto. Domingo Larrazabal, the husband of actress Donna Cruz, for tax evasion.
In a statement, the BIR said Larrazabal failed to supply the BIR with correct and accurate information in his income tax returns for 3 years, 2009-2011.
The BIR received third party information that Larrazabal got a total of P29.14 million in professional fees from PhilHealth from 2009 to 2011. However, he only declared P4.72 million income during the 3-year period.
The BIR said Larrazabal should have registered as a value added tax payer and filed the required quarterly VAT returns, since his earnings were above the threshold required to register as a VAT taxpayer.
"Larrazabal underdeclared his income, did not pay the correct income tax on it and failed to pay the VAT and file his VAT returns," the BIR said.
The BIR said Larrazabal's deficiency taxes for the three-year period stood at P21.14 million.
The government has been stepping up its efforts to run after tax evaders, filing cases against high-profile figures such as actress Solenn Heussaff and PBA players Jimmy Alapag and Jared Dillinger. Although none of which have led to a conviction, BIR Commissioner Kim Henares said the filing of cases against tax evaders are already having an effect on Filipinos.
The BIR has declared "war" on professionals and self-employed persons who don't pay the right taxes.