BIR sues Yong Larrazabal for tax evasion

CEBU, Philippines - The Bureau of Internal Revenue yesterday filed a tax evasion case against ophthalmologist Dr. Potenciano “Yong” Larrazabal, the husband of singer-actress Donna Cruz.

In a criminal complaint filed before the Department of Justice, the BIR said that Larrazabal failed to declare appropriate tax returns from 2009 to 2011.

“Larrazabal underdeclared his income, did not pay the correct income tax on it and failed to pay the VAT and file his VAT returns,” Rappler.com quoted the bureau as saying in its complaint.

Aside from misdeclaration, the BIR also alleged that Larrazabal also failed to pay the right income tax and value-added tax.

“Larrazabal should have registered as a value added tax payer and filed the required quarterly VAT returns as his earnings was well above the threshold required to register as a VAT taxpayer,” the BIR said.

However, Larrazabal’s camp denied the BIR allegations. 

“We are surprised on these talks of tax evasion. We received the letter of authority for them (BIR) to inspect the books of accounts on April 23, 2013 and we are just preparing all the documents as requested by the BIR. We have nothing to hide. This is a very serious charge,” said lawyer Sonny Mercado, Larrazabal’s legal counsel, in an interview with The FREEMAN.

According to the BIR complaint, Larrazabal declared only P4.72 million in his income tax returns in three years but the professional fees he received reportedly reached P29.14 million.

“The sad thing about this report is that in the eyes of the public, my client is already condemned. My client has nothing to hide. Definitely, there is no tax evasion on the part of my client,” Mercado said.

Mercado said that they are going to pay if there are tax discrepancies committed, but if there is none, they will contest the allegations and show proof.

Wilfredo Pilapil, BIR officer of Revenue District 81 (Cebu City North) said they assisted last week the personnel of their head office in gathering documents of Larrazabal. - With Philstar reporter Dennis Carcamo and Rappler.com/LPM (FREEMAN)