PMA chief denies P2.9-M tax raps

MANILA, Philippines - Outgoing Philippine Medical Association (PMA) president Leo Olarte denied yesterday the P2.93-million tax evasion charges against him.

In his counter-affidavit filed  before the Department of Justice (DOJ), Olarte said he did not fail to file income tax returns (ITRs) and value-added tax (VAT) returns from 2006 to 2012 as the Bureau of Internal Revenue (BIR) had charged.

His employers had paid his taxes for those years amounting to P743,563.53, and he is willing to pay any deficiency tax, Olarte added.

BIR records showed 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.

The BIR charged that he did not pay any tax during those years.

Olarte, also a lawyer, said he did not willfully and knowingly attempt to evade paying P2,934,790.24 in taxes.

“The above mathematical computation is wrong, since the BIR willfully and knowingly did not deduct the withholding taxes already paid in the computation of the deficiency income tax,” he said.

The BIR accused Olarte of using the scheme of “end-dating” his records with the Integrated Tax System to avoid detection of his non-filing of ITR and non-payment of income tax to prevent the computer system from generating  open cases against him.

Olarte denied the allegations. “Respondent does not even know what is the alleged scheme of ‘end-dating,’ the truth being that, it is only the first time to hear of the word end-dating,” he said.

Olarte said he was surprised by the filing of the complaint as the BIR did not notify him of the probe.

“In the case at bar, BIR totally and unjustifiably failed to perform its bounden duty of sending letter notices to respondent, a clear dereliction of duty,” he said.