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article image2 doctors in PH sued by BIR for over P4M of unpaid taxes

By Adeline Yuboco     Jan 27, 2011 in World
Manila - The Philippines' Bureau of Internal Revenue (BIR) filed tax evasion charges against two doctors with the Department of Justice (DOJ) on Thursday.
Doctor Vicente Gana Castillo and his wife, Doctor Ma. Teresa Chan Castillo, face charges for failing to file their Income Tax Return (ITR) in 2009 and deliberately making it appear that these were filed for the same year despite official BIR records showing that this was not the case. In addition to this, "Dr. Teresa was also charged for knowingly failing to supply correct and accurate information in her 2009 quarterly Value Added Tax (VAT) returns."
According to ABS-CBN News, the total estimated tax deficiency of both doctors amount to P4.184 million.
The Official Gazette reports:
Initial investigation by the BIR bared that DR. Teresa received income payments amounting to P7,431,816.00 as indicated in BIR Form 1604-E Alphalist submitted to the BIR by income payors/withholding agents and later on corroborated by a certification from the Asian Hospital and Medical Center (AMHC) [where the couple currently hold their respective clinics]. Verification with the BIR's Integrated Tax System also revealed that Dr. Teresa, as well as her husband, Dr. Vicente, did not file her income tax return for taxable year 2009.
The Philippine Daily Inquirer adds:
The BIR computed the total tax deficiency of [Dr. Teresa] Castillo at P2,445,155, inclusive of surcharges and interests. And for failing to declare medical fees worth P2,239,548 in her quarterly returns, she owed the BIR a total of P1,268,888 in VAT, including surcharges and interests.
After the couple were served a Letter of Authority by the BIR, the couple submitted a copy of an ITR which, according to Dr. Teresa, were filed with the BIR in 2009. Based on the investigation conducted by the said government agency, it was determined that the ITR submitted did not bear the complete name of the BIR personnel that supposedly received the ITR. Representatives from two BIR District Offices have also confirmed that the couple did not file the said ITR in 2009.
Dr. Vicente Castillo, meanwhile, owes the BIR a total of P470,090 based on the declaration in the questioned ITR.
Dr. Vicente and Dr. Teresa Castillo's case is the 25th tax evasion lawsuit filed under the Run After Tax Evaders (RATE)—a program conceptualized and initiated by the BIR in 2005 that makes it mandatory to investigate criminal violation of the National Internal Revenue Code of 1997 in the country as well as to provide assistance in the prosecution of criminal cases in the efforts to promote the confidence of the public in the tax system in the Philippines.
More about Doctors, Tax evasion, Medical fees, Value added tax, Income tax return
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