Businessman Cedric Lee is out to battle yet another case apart from the ones filed by Vhong Navarro against him after he allegedly led the mauling of the latter at a condominium unit in Taguig last month.
On Thursday, March 27, Bureau of Internal Revenue, the government’s tax collecting arm, filed tax evasion case before the Department of Justice against Lee, the President and Chief Executive Office of Izumo Contractors Inc.
Lee together with Izumo’s Chief Operating Officer John K. Ong and Chief Finance Officer Judy Gutierrez Lee, in a report by abs-cbnnews.com, were accused of violating the Internal Revenue Code, particularly due to their alleged willful attempt to evade or defeat tax and deliberate failure to supply correct and accurate information in the annual income tax return for taxable years 2006 to 2009.
BIR Commissioner Kim Henares revealed in the report that Izumo and Lee has a total tax liability of P194.47 million, inclusive of surcharges and interests.
"The case against Izumo stemmed from a confidential information received by the BIR, denouncing the company for tax evasion committed via non-declaration of income realized from its business. Access letters were sent to its clients to ascertain the true income received by Izumo," Henares shared.
According to replies sent by the clients, BIR claimed that Lee’s company underdeclared its income when they only declared P72.22 million in income payments during the aforementioned inclusive years when in fact they have reportedly received a total amount of P302.63 million.
"Izumo deliberately failed to declare its income by P88.79 million or 1,602% in 2006, P36.93 million or by 404% in 2007, P9.49 million or by 44% in 2008, and P91.20 million or 227% in 2009," Henares said.
Under Section 248 of the Tax Code, under-declaration of taxable income by more than 30 percent is considered substantial and constitutes a prima facie case of fraud tantamount to tax evasion.