Cedric Lee faces P194.47M tax charge

Posted at 03/27/14 2:48 PM

Cedric Lee. File Photo.

MANILA - Embattled businessman Cedric Lee now faces another legal battle.

After being slapped with a series of criminal cases for the mauling and alleged serious illegal detention of actor/television host Vhong Navarro, Lee and one of his firms, Izumo Contractors Inc., are now subject of a tax evasion case filed by the Bureau of Internal Revenue (BIR) with the Department of Justice (DOJ) .

BIR Commissioner Kim Henares said government is running after Izumo and Lee, the firm's president and chief executive officer, for a total tax liability of P194.47 million, inclusive of surcharges and interests, broken down as follows:

- P89.77 million for 2006;
- P33.78 million for 2007;
- P8.27 million for 2008; and
- P62.65 million for 2009.

"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 said.

Replies to these access letters revealed that Izumo received income payments totalling P302.62 million from 2006 to 2009. However, the firm declared only P72.22 million as income for the said years.

"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.

Also named as respondent in the complaint is John K. Ong, Izumo chief operating officer, and Judy Gutierrez Lee, chief financial officer.

The complaint is the 227th filed by the BIR under the term of Pres. Benigno Aquino III.