MANILA (Mabuhay) – The Bureau of Internal Revenue on Thursday filed a criminal case against “dentist to the stars” Dr Steve Mark Gan before the Department of Justice for attempting to evade the payment of income taxes and value-added taxes for the 2009, 2010 and 2011.
Gan is the founder of Gan Advanced Osseointegration Center (GAOC), which caters to celebrities and international clients. GAOC’s website shows photos of celebrities such as Piolo Pascual, Derek Ramsay, John Lloyd Cruz and Sarah Geronimo as its clients.
The BIR said the case against Gan came from confidential information accusing the dentist of tax evasion.
In its investigation, Gan declared in his ITRs for taxable years 2009, 2010 and 2011 service income amounting to P14.29 million – P3.12 million in 2009; P3.04 million in 2010; and P8.13 million in 2011.
The BIR also found Gan did not file his quarterly VAT returns during the three years, since he opted to register under percentage tax and filed percentage tax returns with its lower tax rate of 3 percent of his gross receipts.
Investigators also requested Rizal Commercial Banking Corporation (RCBC) for certifications as to income payments via credit card made by clients to Dr. Gan. RCBC’s certification showed the Gan received a total amount of P47.49 million in income payments – P11.96 million in 2009; P23.21 million in 2010; and P12.32 million in 2011.
The BIR compared Gan’s declared service income as against the income he received from RCBC, and found that he “substantially underdeclared” his correct taxable income/receipts by 283.13 percent or P8.84 million in 2009, 664.46 percent or P20.18 million in 2010, and 51.43 percent or P4.18 million in 2011.
Under Sec. 248 (B) of the Tax Code, under-declaration of taxable income by more than 30% constitutes a prima facie case of fraud.
The BIR assessed the celebrity dentist a total deficiency tax liability amounting to P36.49 million. (MNS)