MANILA, Philippines—The Bureau of Internal Revenue on Thursday filed tax evasion case before the Department of Justice (DOJ) against businessman Cedric Lee, one of the suspects in the mauling of actor-TV host Vhong Navarro.
Lee, as President of Izumo Contractors Inc., together with chief operating officer John K. Ong and Finance Officer Judy Gutierrez Lee, was slapped with a complaint for violation of the Internal Revenue Code, specifically for 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.
Investigation against Izumo stemmed from a confidential information received by the BIR against tax evasion committed by Izumo. A letter of authority was issued by the BIR for the examination of its books of accounts and other accounting records.
Access letters were sent to Izumo’s clients to determine the true income. Replies from its clients in the form of certification showed that Izumo received a total amount of P302.63 million in income payments.
Further investigation showed that Izumo declared P5.54 million in its ITR in 2006; P9.14 million in 2007; P21.34 million in 2008 and P40.20 million in 2009. Comparing these from the certifications from their clients, the bureau found out that their income in 2006 is P94.33 million; P46.07 million in 2007; P30.83 million in 2008 and P131.49 million in 2009.
The BIR said Lee’s company underdeclared its income by 404 percent.
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.
Their total tax liability is P194.47 million.