DOJ summons PMA chief over P2.9-M tax raps

By Edu Punay, The Philippine Star

Posted at Apr 16 2014 08:14 AM | Updated as of Apr 16 2014 04:14 PM

MANILA - The Department of Justice has summoned outgoing Philippine Medical Association president Leo Olarte over the P2.93-million tax evasion case filed against him last month.

Olarte was issued a subpoena to appear before a hearing on April 28, Assistant State Prosecutor Stewart Allan Mariano said.

Olarte was also required to answer the charges by submitting a counter-affidavit to the complaint of the Bureau of Internal Revenue (BIR).

Olarte was charged with tax evasion for alleged failure to file income tax returns and value-added tax from 2006 to 2012.

A medical practitioner and a lawyer by profession, Olarte derives compensation from more than two employers. As such, he is not covered by the substituted filing system, the BIR said.

Based on the investigation of the BIR, Olarte earned a total of P4.6 million during the seven-year period – P569,825 in 2006, P221,206 in 2007, P226,186 in 2008, P774,940 in 2009, P715,515 in 2010, P992,298 in 2011 and P1.19 million in 2012.

BIR records, however, showed Olarte did not pay any taxes during those years.

He was also found to have adopted the scheme of “end-dating” his records with the BIR’s Integrated Tax System to avoid detection of his non-filing of income tax return and non-payment of income tax, thus preventing the computer system from generating so-called open cases against him.

Olarte belied the accusations, saying he never missed filing his annual income tax returns.