Cedric Lee given more time to answer tax raps

By: Tetch Torres-Tupas - 11 years ago

Cedric Lee and his lawyer at the Department of Justice PHOTO/TECH TORRES-TUPAS

MANILA, Philippines—The Department of Justice (DOJ) granted the request of businessman Cedric Lee to give them time to prepare their response to the P194-million tax evasion complaint filed by the BIR because he has just surrendered last Saturday.

Lee, who arrived at the DOJ escorted by members of the NBI Monday, was accompanied by his lawyer Howard Calleja. He is wearing orange polo shirt, walking shorts and slippers, the same clothes he was wearing when he was seized by authorities last Saturday in Samar.

Calleja told Assistant State Prosecutor Stewart Allan Mariano that they need more time to submit counter-affidavit. He said they have not had enough time to go over the complaint and attached documents because Lee has just surrendered last Saturday.

PHOTO/TECH TORRES-TUPAS

The DOJ gave them up to May 8 to submit their counter-affidavit.

Lee is one of the accused in the mauling of host-comedian Vhong Navarro.

The complaint against Lee was filed last March 27. 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 confidential information received by the BIR that the company has allegedly cheated on tax. 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 is 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 it from the certifications from their clients, the BIR discovered that the 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.